AAON Inc (AAON)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 803,526 | 769,498 | 651,216 | 396,687 | 358,702 |
| Inventory | US$ in thousands | 187,420 | 213,532 | 198,939 | 130,270 | 82,219 |
| Inventory turnover | 4.29 | 3.60 | 3.27 | 3.05 | 4.36 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $803,526K ÷ $187,420K
= 4.29
AAON Inc's inventory turnover ratio has shown fluctuations over the years, from 4.36 in December 2020 to 3.05 in December 2021, then gradually improving to 3.27 in December 2022, 3.60 in December 2023, and reaching 4.29 in December 2024.
A high inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling its products. The increase in the ratio from 2021 to 2024 suggests that AAON Inc has been able to improve its inventory management efficiency.
However, it is essential to further investigate the reasons behind the fluctuations in the inventory turnover ratio to determine if they are a result of changes in sales volumes, production efficiency, inventory management practices, or other factors impacting the company's operations.
Peer comparison
Dec 31, 2024