The Andersons Inc (ANDE)
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 | 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 | 7,652,290 | 6,623,750 | 5,381,855 | 4,038,473 |
| Inventory | US$ in thousands | 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 | 1,170,540 | 741,086 | 753,641 | 1,026,460 |
| Inventory turnover | 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 | 6.54 | 8.94 | 7.14 | 3.93 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,004,760K ÷ $1,166,700K
= 12.00
Andersons Inc. has shown a fluctuating trend in its inventory turnover ratio over the past eight quarters. The ratio measures how efficiently the company is managing its inventory by indicating how many times in a given period it sells and replaces its inventory.
In Q4 2023, the inventory turnover ratio was 12.00, showing a decrease from the previous quarter's ratio of 15.75. Despite the decrease, the ratio remains relatively high, indicating that Andersons Inc. is still effectively selling and replacing its inventory.
Looking back over the past year, the company's inventory turnover has generally been on an upward trend, with Q2 and Q3 2023 showing the highest ratios of 16.24 and 15.75, respectively. This indicates improved efficiency in managing inventory during those quarters.
Comparing the current ratios to the same quarter in the previous year, there has been a noticeable improvement. Q4 2023's ratio of 12.00 is substantially higher than Q4 2022's ratio of 9.61, highlighting enhanced inventory management practices.
Overall, Andersons Inc. has demonstrated a strong ability to turn over its inventory efficiently, with some fluctuations in the ratio quarter over quarter. The recent improvement in inventory turnover indicates that the company has been successful in managing its inventory levels effectively to maximize sales and minimize carrying costs.
Peer comparison
Dec 31, 2023
Dec 31, 2023