Alamo Group Inc (ALG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,216,020 | 1,236,010 | 1,137,100 | 999,709 | 871,356 |
| Inventory | US$ in thousands | 343,363 | 377,480 | 352,553 | 320,917 | 229,971 |
| Inventory turnover | 3.54 | 3.27 | 3.23 | 3.12 | 3.79 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,216,020K ÷ $343,363K
= 3.54
The inventory turnover ratio for Alamo Group Inc has shown a fluctuating trend over the past five years. Starting at 3.79 at the end of December 31, 2020, it decreased to 3.12 by December 31, 2021, indicating a decrease in the efficiency of inventory management. However, the ratio improved slightly to 3.23 by December 31, 2022, and further to 3.27 by December 31, 2023, suggesting a better utilization of inventory during these years.
By the end of December 31, 2024, the inventory turnover ratio increased to 3.54, signifying an enhanced ability to sell and replace inventory within the year. Overall, Alamo Group Inc has been effectively managing its inventory turnover, with some fluctuations, which could be a result of changes in sales volumes, production efficiency, or inventory management strategies. An increase in the ratio indicates improved efficiency, while a decrease may suggest potential issues in managing inventory levels.
Peer comparison
Dec 31, 2024