Envista Holdings Corp (NVST)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,126,000 | 1,094,300 | 1,082,400 | 874,300 | 935,600 |
| Inventory | US$ in thousands | 258,800 | 300,800 | 263,800 | 216,000 | 277,900 |
| Inventory turnover | 4.35 | 3.64 | 4.10 | 4.05 | 3.37 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,126,000K ÷ $258,800K
= 4.35
The inventory turnover ratio of Envista Holdings Corp has exhibited some fluctuations over the past five years. In 2023, the company achieved an inventory turnover of 4.35 times, indicating that it converted its inventory into sales 4.35 times during the year. This represents an improvement compared to the previous year's ratio of 3.64.
Analyzing the trend over the five-year period, we observe that the inventory turnover ratio peaked in 2019 at 4.46 before experiencing slight fluctuations in subsequent years. This suggests that the company has been managing its inventory efficiently, although there was a slight decrease in inventory turnover in 2022.
Overall, the inventory turnover ratios demonstrate that Envista Holdings Corp has generally been effective in managing its inventory levels and converting them into sales, with the ratio remaining relatively stable over the years. However, it would be beneficial for the company to closely monitor its inventory turnover to ensure optimal inventory management practices are in place.
Peer comparison
Dec 31, 2023