Alcoa Corp (AA)
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 | 10,201,000 | 10,389,000 | 10,576,000 | 10,828,000 | 10,595,000 | 9,417,000 | 9,080,000 | 8,471,000 | 8,590,000 | 8,511,000 | 8,226,000 | 7,992,000 | 7,903,000 | 9,392,000 | 9,520,000 | 7,612,000 | 5,726,000 | 2,793,000 | 810,000 | 1,037,000 |
| Inventory | US$ in thousands | 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 | 1,644,000 | 1,649,000 | 1,767,000 | 1,799,000 |
| Inventory turnover | 4.73 | 4.74 | 4.41 | 4.52 | 4.37 | 3.92 | 3.55 | 3.40 | 4.39 | 5.00 | 5.32 | 5.64 | 5.65 | 6.72 | 6.71 | 5.04 | 3.48 | 1.69 | 0.46 | 0.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,201,000K ÷ $2,158,000K
= 4.73
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. Alcoa Corp's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.62 to 4.56. A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally favorable as it minimizes the risk of obsolete or unsold inventory.
Alcoa Corp's inventory turnover has shown a slight increasing trend in recent quarters, with Q4 2023 and Q3 2023 recording the highest turnover ratios of 4.55 and 4.56, respectively. This suggests that the company has been able to improve its inventory management efficiency. However, the fluctuations in the ratio over the quarters indicate some variability in the company's ability to sell its inventory.
Overall, Alcoa Corp's inventory turnover ratios are within a reasonable range compared to industry benchmarks, indicating that the company is effectively managing its inventory levels. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023