Solventum Corp. (SOLV)
Inventory turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,604,500 | 3,642,000 | 3,558,000 | 3,517,000 | 3,476,000 | |||
| Inventory | US$ in thousands | 901,000 | 869,000 | 849,000 | 863,000 | 880,000 | 873,000 | — | — |
| Inventory turnover | 4.00 | 4.19 | 4.19 | 4.08 | 3.95 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,604,500K ÷ $901,000K
= 4.00
The inventory turnover ratio of Solventum Corp. has shown consistency in the recent quarters, ranging from 3.95 to 4.19, indicating that the company effectively manages its inventory levels. The ratio measures how many times in a year the company sells and replaces its inventory. A higher inventory turnover ratio typically suggests efficient inventory management and a lower risk of inventory obsolescence.
By analyzing the trend, Solventum Corp. has been able to maintain a steady pace of inventory turnover, reflecting a balance between stocking enough inventory to meet demand and avoiding excess holding costs. It is important to note that inventory turnover ratios can vary by industry, so it is essential to compare the company's ratios with its industry peers for a more insightful analysis.
Overall, the stable inventory turnover ratios of Solventum Corp. indicate a healthy inventory management strategy, contributing to the company's operational efficiency and potentially improving its overall financial performance.
Peer comparison
Mar 31, 2024
Mar 31, 2024