Envista Holdings Corp (NVST)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,595,100 | 2,327,900 | 2,332,800 | 2,331,600 | 2,311,800 | 2,333,400 | 2,304,400 | 2,276,900 | 2,248,600 | 2,597,400 | 2,561,400 | 2,486,800 | 2,532,200 | 1,810,100 | |||
| Inventory | US$ in thousands | 258,800 | 278,800 | 297,000 | 307,200 | 300,800 | 291,300 | 286,000 | 280,400 | 263,800 | 274,300 | 311,500 | 283,200 | 216,000 | 257,500 | 280,800 | 312,300 | 277,900 |
| Inventory turnover | 10.03 | 8.35 | 7.85 | 7.59 | 7.69 | 8.01 | 8.06 | 8.12 | 8.52 | 9.47 | 8.22 | 8.78 | 11.72 | 7.03 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,595,100K ÷ $258,800K
= 10.03
Based on the provided data, Envista Holdings Corp's inventory turnover has shown fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory levels by indicating the number of times inventory is sold and replaced within a specific period.
Envista's inventory turnover ratio ranged from a low of 3.40 in Q3 2022 to a high of 4.35 in Q4 2023. A higher inventory turnover ratio generally indicates that a company is selling its products more quickly and efficiently, which can be a positive indicator of operational efficiency.
It is noteworthy that the inventory turnover ratio has generally been increasing over the quarters, with slight fluctuations along the way. This trend suggests that Envista has been improving its inventory management practices and is now selling its inventory at a faster pace.
Overall, the trend in Envista Holdings Corp's inventory turnover indicates a positive direction in the company's operational efficiency and suggests effective management of their inventory levels. It is important for the company to continue monitoring and managing its inventory effectively to maintain this trend in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023