Verra Mobility Corp (VRRM)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	281,210	269,878	213,615	98,691	184,746
Inventory	US$ in thousands	17,966	19,307	12,093	113	26,719
Inventory turnover		15.65	13.98	17.66	873.37	6.91

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $281,210K ÷ $17,966K
= 15.65

Verra Mobility Corp's inventory turnover ratio has shown a gradual decline over the past three years, from 2.91 in 2021 to 2.45 in 2022 and further to 2.42 in 2023. This trend indicates that the company is taking longer to sell its inventory or is holding onto inventory for a longer period before it is sold. A decreasing inventory turnover ratio may suggest potential issues such as overstocking, slow-moving inventory, or challenges in managing inventory levels efficiently. Verra Mobility Corp should closely monitor its inventory management practices and take measures to address any inefficiencies to improve its inventory turnover ratio and optimize working capital utilization.