AAON Inc (AAON)
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 | 803,526 | 778,322 | 761,089 | 750,556 | 769,498 | 750,656 | 731,809 | 703,308 | 651,216 | 584,894 | 510,432 | 450,763 | 396,687 | 369,729 | 361,101 | 346,797 | 358,702 | 362,427 | 354,593 | 356,361 |
| Inventory | US$ in thousands | 187,420 | 177,731 | 182,988 | 196,252 | 213,532 | 214,507 | 215,408 | 199,579 | 198,939 | 176,888 | 164,001 | 146,091 | 130,270 | 104,553 | 87,399 | 84,040 | 82,219 | 78,819 | 85,411 | 72,855 |
| Inventory turnover | 4.29 | 4.38 | 4.16 | 3.82 | 3.60 | 3.50 | 3.40 | 3.52 | 3.27 | 3.31 | 3.11 | 3.09 | 3.05 | 3.54 | 4.13 | 4.13 | 4.36 | 4.60 | 4.15 | 4.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $803,526K ÷ $187,420K
= 4.29
Based on the inventory turnover data provided for AAON Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the company's inventory turnover ratio. The inventory turnover ratio indicates how efficiently a company manages its inventory by showing the number of times it sells and replaces its inventory within a specific period.
Starting at 4.89 in March 2020, the inventory turnover ratio gradually decreased to 3.05 by December 2021, indicating a decline in the efficiency of inventory management. This trend continued with slight fluctuations until September 2022, reaching a low of 3.31. Subsequently, there was a slight improvement in inventory turnover to 3.27 by December 2022.
However, from March 2023 onwards, there was a more significant improvement in the inventory turnover ratio, showing an upward trend. The ratio increased to 4.16 by June 2024, indicating a positive development in managing inventory efficiently. The trend continued to strengthen, reaching 4.29 by December 2024.
Overall, the inventory turnover ratio for AAON Inc experienced periods of decline and growth within the analyzed timeframe. The recent improvement suggests that the company has been more effective in managing its inventory, potentially leading to better working capital management and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024