Sotera Health Co (SHC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 498,146 | 472,130 | 446,683 | 412,806 | 374,586 |
| Inventory | US$ in thousands | 49,158 | 51,985 | 37,145 | 54,288 | 34,093 |
| Inventory turnover | 10.13 | 9.08 | 12.03 | 7.60 | 10.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $498,146K ÷ $49,158K
= 10.13
The inventory turnover for Sotera Health Co has shown fluctuations over the past five years. In 2020, the inventory turnover was reported at 10.99, indicating that the company was able to sell and replace its inventory nearly 11 times during that year. However, this ratio decreased to 7.60 in 2021, suggesting a slower turnover of inventory.
In 2022, there was a significant improvement in inventory turnover to 12.03, indicating that the company was able to sell and replace its inventory more efficiently. In 2023, the turnover ratio dropped to 9.08, showing a slight decrease in the efficiency of managing inventory turnover.
For the most recent year, 2024, the inventory turnover ratio was reported at 10.13. This indicates that the company was able to efficiently manage its inventory turnover, although it was slightly lower compared to 2022.
Overall, Sotera Health Co has shown varying levels of efficiency in managing its inventory turnover over the past five years. The company should continue to monitor and optimize its inventory management processes to ensure a healthy balance between holding too much or too little inventory.
Peer comparison
Dec 31, 2024