Alamo Group Inc (ALG)
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 | 1,496,082 | 1,466,988 | 1,430,052 | 1,399,060 | 1,368,994 | 1,334,352 | 1,309,680 | 1,268,382 | 1,221,568 | 1,185,429 | 1,138,002 | 1,069,973 | 1,075,130 | 1,081,350 | 1,069,011 | 1,080,011 | 1,029,150 | 981,931 | 963,609 | 937,838 |
| Inventory | US$ in thousands | 377,480 | 371,748 | 369,319 | 362,593 | 352,553 | 362,713 | 352,915 | 355,389 | 320,917 | 294,270 | 264,540 | 250,250 | 242,501 | 243,529 | 248,706 | 273,648 | 267,674 | 206,516 | 205,910 | 211,355 |
| Inventory turnover | 3.96 | 3.95 | 3.87 | 3.86 | 3.88 | 3.68 | 3.71 | 3.57 | 3.81 | 4.03 | 4.30 | 4.28 | 4.43 | 4.44 | 4.30 | 3.95 | 3.84 | 4.75 | 4.68 | 4.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,496,082K ÷ $377,480K
= 3.96
Based on the provided data, Alamo Group Inc.'s inventory turnover ratio has demonstrated stability and consistency over the past eight quarters. The inventory turnover ratio has ranged between 2.93 and 3.27, indicating the company's ability to efficiently manage its inventory. A higher inventory turnover ratio is typically desirable as it suggests that the company is selling its products quickly and efficiently, minimizing the risk of holding excess inventory.
The consistent values around the 3.0 mark suggest that Alamo Group Inc. has been effectively managing its inventory levels and aligning them with customer demand over the analyzed quarters. This steady performance in inventory turnover indicates sound inventory management practices within the company. However, it is important to conduct further analysis, such as comparing these ratios with industry benchmarks or historical trends, to gain a more comprehensive understanding of Alamo Group Inc.'s inventory management efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023