Advanced Energy Industries Inc (AEIS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 952,699 | 1,063,410 | 1,169,920 | 923,632 | 873,957 |
| Inventory | US$ in thousands | 360,411 | 336,137 | 376,012 | 338,410 | 221,346 |
| Inventory turnover | 2.64 | 3.16 | 3.11 | 2.73 | 3.95 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $952,699K ÷ $360,411K
= 2.64
The inventory turnover ratio for Advanced Energy Industries Inc has shown some fluctuations over the years based on the data provided.
In 2020, the inventory turnover ratio was 3.95, indicating that the company was able to sell and replace its inventory approximately 3.95 times during that year. This suggests efficient management of inventory levels and a high rate of inventory turnover.
However, in 2021, the inventory turnover ratio decreased to 2.73, indicating a slight decrease in the rate at which the company was able to sell and replace its inventory. This could suggest potential issues with inventory management efficiency or a decrease in sales relative to the level of inventory.
In 2022 and 2023, the inventory turnover ratio improved to 3.11 and 3.16 respectively, which is a positive sign indicating better management of inventory levels and an increase in the rate of inventory turnover.
Lastly, in 2024, the inventory turnover ratio dropped to 2.64, signaling a decrease in the rate at which the company was able to sell and replace its inventory. This could raise concerns about potential inefficiencies in inventory management or slower sales relative to inventory levels.
Overall, while there have been fluctuations in the inventory turnover ratio for Advanced Energy Industries Inc, the company generally maintained a reasonable level of inventory turnover, with some room for improvement in certain years to ensure optimal management of inventory levels and working capital efficiency.
Peer comparison
Dec 31, 2024