Alcoa Corp (AA)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,044,000 | 9,755,000 | 9,831,000 | 9,813,000 | 9,813,000 | 9,984,000 | 10,183,000 | 10,435,000 | 10,212,000 | 9,999,000 | 9,653,000 | 9,042,000 | 9,153,000 | 8,744,000 | 8,460,000 | 8,236,000 | 7,969,000 | 8,043,000 | 8,125,000 | 8,382,000 |
| Inventory | US$ in thousands | 1,998,000 | 2,096,000 | 1,975,000 | 2,048,000 | 2,158,000 | 2,190,000 | 2,400,000 | 2,395,000 | 2,427,000 | 2,400,000 | 2,556,000 | 2,495,000 | 1,956,000 | 1,702,000 | 1,547,000 | 1,417,000 | 1,398,000 | 1,398,000 | 1,419,000 | 1,509,000 |
| Inventory turnover | 5.03 | 4.65 | 4.98 | 4.79 | 4.55 | 4.56 | 4.24 | 4.36 | 4.21 | 4.17 | 3.78 | 3.62 | 4.68 | 5.14 | 5.47 | 5.81 | 5.70 | 5.75 | 5.73 | 5.55 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,044,000K ÷ $1,998,000K
= 5.03
The inventory turnover ratio for Alcoa Corp has fluctuated over the reported periods. The inventory turnover measures how many times a company sells and replaces its inventory during a certain period. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling and replenishing stock.
From March 31, 2020, when the inventory turnover was 5.55, the ratio gradually increased and peaked at 5.81 on March 31, 2021. This indicated an improvement in the company's ability to sell and replace its inventory efficiently.
However, from June 30, 2021, the inventory turnover ratio started to decline, reaching its lowest point of 3.62 on March 31, 2022. This significant drop may suggest potential issues with inventory management, such as overstocking or underutilization of inventory.
The ratio slightly recovered in the subsequent periods but remained below the peak levels seen in 2021. The inventory turnover ratio reached 5.03 by December 31, 2024, indicating a slight improvement in inventory management compared to the low point in 2022.
Overall, Alcoa Corp should closely monitor its inventory turnover ratio to ensure efficient inventory management and optimize its working capital levels.
Peer comparison
Dec 31, 2024
Dec 31, 2024