Solventum Corp. (SOLV)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,681,000	3,435,000	3,248,000	2,966,000
Inventory	US$ in thousands	869,000	873,000	813,000	—
Inventory turnover		4.24	3.93	4.00	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,681,000K ÷ $869,000K
= 4.24

Solventum Corp.'s inventory turnover has shown a consistent trend of improvement over the past three years. The inventory turnover ratio increased from 4.00 in 2021 to 4.24 in 2023, indicating that the company is selling its inventory at a faster rate. This suggests that Solventum Corp. has been managing its inventory more efficiently and effectively, potentially leading to lower holding costs and better liquidity. Overall, the increasing trend in inventory turnover reflects positively on the company's inventory management practices.