Alcoa Corp (AA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,201,000 | 10,595,000 | 8,590,000 | 8,216,000 | 10,340,000 |
| Inventory | US$ in thousands | 2,158,000 | 2,427,000 | 1,956,000 | 1,398,000 | 1,644,000 |
| Inventory turnover | 4.73 | 4.37 | 4.39 | 5.88 | 6.29 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,201,000K ÷ $2,158,000K
= 4.73
The inventory turnover for Alcoa Corp has varied over the past five years, ranging from a low of 4.21 in 2022 to a high of 5.70 in 2020. In general, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
In 2023, the inventory turnover ratio is 4.55, which suggests that Alcoa Corp is turning over its inventory approximately 4.55 times during the year. This indicates a moderate level of efficiency in managing its inventory compared to the previous year.
Overall, while there have been fluctuations in the inventory turnover ratio, Alcoa Corp has maintained a relatively consistent level of efficiency in managing its inventory over the past five years. Further analysis of the company's operations and industry trends would provide additional insights into the reasons behind these fluctuations and their implications for the company's financial performance.
Peer comparison
Dec 31, 2023