The Andersons Inc (ANDE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,563,600 | 14,004,700 | 16,641,200 | 12,019,400 | 7,698,420 |
| Inventory | US$ in thousands | 1,286,810 | 1,166,700 | 1,731,720 | 1,814,540 | 1,293,070 |
| Inventory turnover | 8.21 | 12.00 | 9.61 | 6.62 | 5.95 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,563,600K ÷ $1,286,810K
= 8.21
The inventory turnover ratio of The Andersons Inc has shown a positive trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 5.95 in 2020 to 6.62 in 2021, demonstrating an improvement in the company's efficiency in managing its inventory. Further significant increases were observed in the subsequent years, reaching 9.61 in 2022, 12.00 in 2023, and then slightly decreasing to 8.21 in 2024.
The consistent growth in the inventory turnover ratio indicates that The Andersons Inc has been able to sell its inventory more frequently and efficiently over time. A higher inventory turnover ratio suggests that the company is effectively managing its inventory levels by either selling products quickly or maintaining optimal stock levels, which can lead to improved liquidity and profitability.
Overall, the upward trend in The Andersons Inc's inventory turnover ratio reflects a positive performance in inventory management, indicating the company's ability to generate sales from its inventory efficiently and potentially maximize its profitability.
Peer comparison
Dec 31, 2024