Arcosa Inc (ACA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,864,100 | 1,831,700 | 1,670,200 | 1,553,600 | 1,404,500 |
| Inventory | US$ in thousands | 401,800 | 315,800 | 324,500 | 276,800 | 283,300 |
| Inventory turnover | 4.64 | 5.80 | 5.15 | 5.61 | 4.96 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,864,100K ÷ $401,800K
= 4.64
Arcosa Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times a company sells and replaces its inventory in a given period.
In 2023, Arcosa Inc's inventory turnover ratio decreased to 4.64 from 5.76 in 2022. This indicates that the company took longer to sell and replace its inventory in 2023 compared to the previous year, suggesting potential inefficiencies in inventory management.
However, it's important to note that a lower inventory turnover ratio is not necessarily negative if it is aligned with the company's industry standards and business model. Additionally, a lower ratio could also be a result of changes in the company's sales strategy or product mix.
Overall, further analysis of Arcosa Inc's operations, sales trends, and industry benchmarks is necessary to fully understand the implications of the fluctuations in its inventory turnover ratio over the years.
Peer comparison
Dec 31, 2023