Arcosa Inc (ACA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,054,700 | 1,864,100 | 1,820,000 | 1,670,200 | 1,553,600 |
| Inventory | US$ in thousands | 359,900 | 401,800 | 315,800 | 324,500 | 276,800 |
| Inventory turnover | 5.71 | 4.64 | 5.76 | 5.15 | 5.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,054,700K ÷ $359,900K
= 5.71
Based on the provided data, Arcosa Inc's inventory turnover has shown some variability over the past five years. The inventory turnover ratio is a measure of how efficiently a company manages its inventory by assessing how many times a company's inventory is sold and replaced within a specific period.
Arcosa Inc's inventory turnover ratio ranged from 4.64 to 5.76 during the period from December 31, 2020, to December 31, 2024. A higher inventory turnover ratio indicates that the company is selling and replenishing its inventory more frequently, which typically signals strong sales and efficient inventory management. Conversely, a lower inventory turnover ratio may suggest slower sales or excess inventory levels.
Arcosa Inc's inventory turnover was highest at 5.76 on December 31, 2022, indicating efficient inventory management and strong sales that year. However, the inventory turnover ratio dropped to 4.64 on December 31, 2023, which could potentially indicate slower sales or challenges in managing inventory effectively during that period.
Overall, Arcosa Inc's inventory turnover ratios fluctuated within a moderate range over the five-year period, suggesting varying levels of efficiency in managing inventory and sales performance across different years. Further analysis and comparison with industry benchmarks could provide insights into the company's inventory management effectiveness and overall operational performance.
Peer comparison
Dec 31, 2024