Verra Mobility Corp (VRRM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	18,988	43,463	47,262	35,146	33,540
Inventory	US$ in thousands	15,502	17,966	19,307	12,093	24,060
Inventory turnover		1.22	2.42	2.45	2.91	1.39

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $18,988K ÷ $15,502K
= 1.22

The inventory turnover ratio of Verra Mobility Corp has shown fluctuations over the past five years. In December 31, 2020, the inventory turnover was 1.39, indicating that the company's inventory was being turned over approximately 1.39 times during that year.

From 2020 to 2021, there was a significant improvement in inventory turnover, increasing to 2.91. This suggests that the company became more efficient in managing its inventory levels and sales during that period.

In the following years, the inventory turnover remained relatively stable, with ratios of 2.45 in 2022, 2.42 in 2023, and a decrease to 1.22 in 2024. The decrease in 2024 may raise concerns about potential inventory management challenges or a slowdown in sales relative to inventory levels.

Overall, while there have been fluctuations in the inventory turnover ratio of Verra Mobility Corp, the company has generally shown an improvement in inventory management efficiency over the years, although a decrease in 2024 signals a need for further monitoring and analysis.