Envista Holdings Corp (NVST)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,627,000 | 1,126,000 | 1,094,300 | 1,082,400 | 874,300 |
| Inventory | US$ in thousands | 241,000 | 258,800 | 300,800 | 263,800 | 216,000 |
| Inventory turnover | 15.05 | 4.35 | 3.64 | 4.10 | 4.05 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,627,000K ÷ $241,000K
= 15.05
To analyze Envista Holdings Corp's inventory turnover, we observe a fluctuating trend over the five-year period provided. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory in a given period.
In December 2020, the inventory turnover was 4.05, indicating that Envista Holdings Corp turned over its inventory approximately 4.05 times that year. The ratio slightly increased to 4.10 by December 2021, suggesting a small improvement in inventory management efficiency.
However, by December 2022, the inventory turnover ratio decreased to 3.64, which may raise concerns about inventory management or demand fluctuations affecting sales. The ratio then sharply increased to 4.35 by December 2023, indicating a possible improvement in inventory management or increased sales activity.
The most notable change occurred by December 2024 when the inventory turnover surged to 15.05, which could be an anomaly or an exceptional event like a large one-time sale or a significant reduction in inventory levels. Such a high turnover ratio may signal efficient inventory management, but further analysis is necessary to understand the underlying reasons for this significant jump.
Overall, fluctuations in the inventory turnover ratio for Envista Holdings Corp over the five-year period suggest varying levels of efficiency in managing inventory and may warrant closer examination of inventory control practices and sales strategies.
Peer comparison
Dec 31, 2024