Sotera Health Co (SHC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 529,295 | 549,314 | 539,063 | 515,537 | 487,831 | 451,844 | 447,342 | 447,891 | 446,683 | 444,109 | 431,996 | 423,909 | 412,806 | 401,778 | 393,717 | 379,679 | 374,586 | 374,582 | 377,143 | 378,802 |
| Inventory | US$ in thousands | 49,158 | 53,647 | 61,753 | 55,096 | 51,985 | 37,924 | 42,102 | 46,736 | 37,145 | 37,153 | 39,652 | 45,701 | 54,288 | 37,496 | 35,721 | 33,375 | 34,093 | 29,153 | 30,348 | 33,175 |
| Inventory turnover | 10.77 | 10.24 | 8.73 | 9.36 | 9.38 | 11.91 | 10.63 | 9.58 | 12.03 | 11.95 | 10.89 | 9.28 | 7.60 | 10.72 | 11.02 | 11.38 | 10.99 | 12.85 | 12.43 | 11.42 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $529,295K ÷ $49,158K
= 10.77
The inventory turnover ratio for Sotera Health Co has shown some fluctuations over the past few years. It ranged from a low of 7.60 in December 2021 to a high of 12.85 in September 2020. The ratio measures how many times the company's inventory is sold and replaced over a specific period, indicating the efficiency of managing inventory levels.
In general, a higher inventory turnover ratio is desirable as it signifies that the company is selling its products quickly and efficiently. On the other hand, a lower ratio may indicate issues such as overstocking, slow-moving inventory, or potential obsolescence.
Sotera Health Co's inventory turnover ratio improved from 7.60 in December 2021 to 10.77 in December 2024, showing a positive trend in inventory management efficiency during this period.
It is important for the company to monitor its inventory turnover ratio continuously to ensure optimal inventory levels, minimize carrying costs, and improve overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024