Sotera Health Co (SHC)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 472,130 | 451,844 | 447,342 | 447,891 | 446,683 | 444,109 | 431,996 | 423,909 | 412,806 | |||
| Inventory | US$ in thousands | 48,316 | 37,924 | 42,102 | 46,736 | 37,145 | 37,153 | 39,652 | 45,701 | 54,288 | 37,496 | 35,721 | 33,375 |
| Inventory turnover | 9.77 | 11.91 | 10.63 | 9.58 | 12.03 | 11.95 | 10.89 | 9.28 | 7.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $472,130K ÷ $48,316K
= 9.77
The inventory turnover for Sotera Health Co has shown fluctuations over the past eight quarters, ranging from a low of 9.28 in Q1 2022 to a high of 12.03 in Q4 2022. The average inventory turnover ratio over this period is approximately 10.73.
A high inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as a positive sign of efficiency. On the other hand, a lower ratio could suggest overstocking or slow-moving inventory.
Sotera Health Co's recent inventory turnover ratios have been relatively stable around the average, indicating a consistent level of inventory management efficiency. It is important for the company to monitor this ratio closely to ensure optimal inventory levels to meet customer demand while avoiding excess holding costs.
Peer comparison
Dec 31, 2023
Dec 31, 2023