Verra Mobility Corp (VRRM)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	281,210	252,259	258,809	262,856	269,778	264,376	251,130	231,307	213,568	116,781	103,412	100,304	98,558	181,365	184,647	190,189	184,483	349,362	307,153	260,751
Inventory	US$ in thousands	17,966	19,943	19,791	18,923	19,307	17,922	16,549	15,451	12,093	34,976	33,799	23,696	113	23,696	19,225	25,675	917	28,579	23,184	1,704
Inventory turnover		15.65	12.65	13.08	13.89	13.97	14.75	15.17	14.97	17.66	3.34	3.06	4.23	872.19	7.65	9.60	7.41	201.18	12.22	13.25	153.02

December 31, 2023 calculation

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

Based on the data provided, Verra Mobility Corp's inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratio represents how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced within a given period.

In Q4 2023, the inventory turnover ratio was 2.42, slightly higher than the previous quarter but lower compared to Q1 and Q4 of 2022. This suggests that the company is taking approximately 2.42 times to sell its average inventory during this quarter.

Looking at the trend over the past eight quarters, there seems to be some variability in the inventory turnover ratio, ranging from a low of 2.10 in Q3 2023 to a high of 2.97 in Q3 2022. Despite the fluctuations, the company has generally maintained a relatively consistent range for its inventory turnover ratio.

Overall, the inventory turnover ratio for Verra Mobility Corp indicates that the company is efficiently managing its inventory levels, with inventory selling and replenishment occurring at a reasonable pace over the period analyzed. However, it is essential for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and cost-effectiveness.