Solventum Corp. (SOLV)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,659,000 | 3,684,000 | 3,668,000 | 3,604,500 | 3,642,000 | 3,558,000 | 3,517,000 | 3,476,000 | 3,435,000 |
| Inventory | US$ in thousands | 965,000 | 953,000 | 899,000 | 901,000 | 869,000 | 849,000 | 863,000 | 880,000 | 873,000 |
| Inventory turnover | 3.79 | 3.87 | 4.08 | 4.00 | 4.19 | 4.19 | 4.08 | 3.95 | 3.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,659,000K ÷ $965,000K
= 3.79
Solventum Corp.'s inventory turnover has shown a fluctuating trend over the past couple of years based on the provided data. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a specific period the company's inventory is sold and replaced.
For Solventum Corp., the inventory turnover ratio started at 3.93 on December 31, 2022, and gradually increased to a peak of 4.19 by both September 30, 2023, and December 31, 2023. This suggests that the company was able to sell and replace its inventory more frequently during these quarters.
However, there was a slight decrease in inventory turnover to 4.00 on March 31, 2024, followed by fluctuations between 4.08 and 3.79 in the subsequent quarters. These variations could indicate changes in the company's sales volumes, production levels, or inventory management practices.
Overall, while Solventum Corp.'s inventory turnover has shown some level of stability, it is important for the company to maintain a balance in managing its inventory efficiently to support its sales activities and avoid potential stockouts or excess inventory holding costs.
Peer comparison
Dec 31, 2024
Dec 31, 2024