AAON Inc (AAON)
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 | 971,282 | 933,042 | 888,799 | 844,153 | 779,971 | 697,932 | 607,795 | 537,960 | 474,130 | 442,247 | 433,138 | 417,541 | 431,020 | 439,222 | 426,691 | 423,506 | 321,947 | 308,602 | 222,683 | 133,046 |
| Inventory | US$ in thousands | 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 | 73,601 | 80,623 | 77,044 | 74,577 |
| Inventory turnover | 4.55 | 4.35 | 4.13 | 4.23 | 3.92 | 3.95 | 3.71 | 3.68 | 3.64 | 4.23 | 4.96 | 4.97 | 5.24 | 5.57 | 5.00 | 5.81 | 4.37 | 3.83 | 2.89 | 1.78 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $971,282K ÷ $213,532K
= 4.55
The inventory turnover of AAON Inc. has been relatively stable over the past eight quarters, ranging from a low of 3.09 in Q1 2022 to a high of 3.60 in Q4 2023, with an average turnover of approximately 3.35. This indicates that, on average, the company has been able to sell and replace its inventory about 3.35 times in a year.
A higher inventory turnover ratio generally suggests that the company is efficiently managing its inventory by quickly selling off products and restocking with new goods, which can be a positive sign of effective working capital management. In the case of AAON Inc., the consistent turnover above 3 indicates that the company is effectively managing its inventory levels.
It's worth noting that the slight fluctuations in the inventory turnover ratio over the quarters could be due to seasonal variations, changes in demand, or the company's inventory management practices. However, the overall trend suggests that AAON Inc. has been maintaining a healthy balance between holding excess inventory and meeting customer demand efficiently.
Peer comparison
Dec 31, 2023
Dec 31, 2023