Alamo Group Inc (ALG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,224,139 | 1,243,280 | 1,248,367 | 1,258,810 | 1,240,061 | 1,216,194 | 1,187,121 | 1,160,998 | 1,137,098 | 1,101,810 | 1,077,397 | 1,040,310 | 999,709 | 968,103 | 929,211 | 870,611 | 871,356 | 881,554 | 871,550 | 882,793 |
| Inventory | US$ in thousands | 343,363 | 371,999 | 385,136 | 384,488 | 377,480 | 371,748 | 369,319 | 362,593 | 352,553 | 362,713 | 352,915 | 355,389 | 320,917 | 294,270 | 264,540 | 250,250 | 229,971 | 243,529 | 248,706 | 273,648 |
| Inventory turnover | 3.57 | 3.34 | 3.24 | 3.27 | 3.29 | 3.27 | 3.21 | 3.20 | 3.23 | 3.04 | 3.05 | 2.93 | 3.12 | 3.29 | 3.51 | 3.48 | 3.79 | 3.62 | 3.50 | 3.23 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,224,139K ÷ $343,363K
= 3.57
The inventory turnover ratio of Alamo Group Inc has shown some fluctuation over the past few years. From March 31, 2020, to December 31, 2020, there was a consistent increase in inventory turnover, indicating that the company was selling its inventory more efficiently during that period. However, from March 31, 2021, to June 30, 2022, the inventory turnover ratio fluctuated around a relatively stable range of 3.48 to 3.51, suggesting a consistent level of inventory management.
Notably, there was a slight decrease in inventory turnover from March 31, 2022, to March 31, 2024, dropping from 2.93 to 3.27. This could indicate potential issues with inventory management or slower inventory turnover during that period. Nonetheless, the ratio remained relatively stable within the range of 3.20 to 3.34 for the remainder of the period up to December 31, 2024.
Overall, Alamo Group Inc's inventory turnover has generally been within an acceptable range, reflecting efficient management of inventory and the company's ability to convert its inventory into sales. fluctuations in the ratio may warrant further investigation to assess the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2024
Dec 31, 2024