Alcoa Corp (AA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,044,000 | 9,813,000 | 10,212,000 | 9,153,000 | 7,969,000 |
| Inventory | US$ in thousands | 1,998,000 | 2,158,000 | 2,427,000 | 1,956,000 | 1,398,000 |
| Inventory turnover | 5.03 | 4.55 | 4.21 | 4.68 | 5.70 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,044,000K ÷ $1,998,000K
= 5.03
The inventory turnover ratio for Alcoa Corp has shown a gradual decline over the past five years, starting at 5.70 in 2020 and decreasing to 4.68 in 2021, 4.21 in 2022, 4.55 in 2023, and finally increasing slightly to 5.03 in 2024. This signifies that the company was selling its inventory less frequently in the given years, which may indicate either an inefficient inventory management strategy or a decrease in demand for its products. The increase in 2024 suggests a positive trend towards a more efficient use of inventory. Further analysis of the company's operations and market conditions would be necessary to understand the reasons behind these fluctuations and evaluate their impact on Alcoa's overall performance.
Peer comparison
Dec 31, 2024