The Andersons Inc (ANDE)
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 | 10,563,620 | 10,648,880 | 11,683,010 | 12,861,430 | 14,004,760 | 15,516,930 | 16,094,500 | 16,516,030 | 16,641,220 | 15,722,450 | 14,543,880 | 13,396,500 | 12,019,360 | 10,814,990 | 9,730,350 | 8,406,420 | 7,678,000 | 7,040,920 | 7,122,180 | 7,538,020 |
| Inventory | US$ in thousands | 1,286,810 | 884,339 | 686,540 | 994,543 | 1,166,700 | 985,292 | 990,789 | 1,551,100 | 1,731,720 | 1,556,430 | 1,618,330 | 1,950,300 | 1,814,540 | 1,017,800 | 904,924 | 1,287,640 | 1,293,070 | 747,588 | 616,323 | 1,028,080 |
| Inventory turnover | 8.21 | 12.04 | 17.02 | 12.93 | 12.00 | 15.75 | 16.24 | 10.65 | 9.61 | 10.10 | 8.99 | 6.87 | 6.62 | 10.63 | 10.75 | 6.53 | 5.94 | 9.42 | 11.56 | 7.33 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,563,620K ÷ $1,286,810K
= 8.21
The inventory turnover for The Andersons Inc has shown fluctuations over the observed period from 2020 to 2024.
The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times in a year the inventory has been sold and replaced. A higher turnover ratio is generally preferred as it suggests that the company is selling its inventory quickly.
The inventory turnover for The Andersons Inc ranged from a low of 5.94 as of December 31, 2020, to a high of 17.02 as of June 30, 2024. The ratio experienced an overall increasing trend with some fluctuations in between.
Key points worth noting are the significant improvement observed from June 30, 2023, to June 30, 2024, where the ratio increased from 16.24 to 17.02, indicating a substantial increase in inventory turnover efficiency during that period.
However, it is important to also consider the industry benchmarks and compare the company's inventory turnover with its competitors to gain a better understanding of its performance in managing inventory. A thorough analysis considering the company's specific industry and business model would provide further insights into the efficiency of its inventory management practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024