Smith AO Corporation (AOS)
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 | 3,131,600 | 3,164,100 | 3,178,400 | 3,118,000 | 3,126,800 | 3,076,900 | 3,045,400 | 3,087,200 | 3,108,000 | 3,170,200 | 3,197,400 | 3,110,700 | 2,941,700 | 2,806,400 | 2,678,400 | 2,545,300 | 2,469,600 | 2,425,100 | 2,417,500 | 2,474,500 |
| Inventory | US$ in thousands | 532,100 | 554,900 | 544,700 | 522,300 | 497,400 | 519,000 | 508,500 | 503,700 | 516,400 | 525,600 | 493,000 | 488,700 | 447,700 | 357,700 | 330,400 | 312,800 | 300,100 | 302,600 | 306,000 | 312,300 |
| Inventory turnover | 5.89 | 5.70 | 5.84 | 5.97 | 6.29 | 5.93 | 5.99 | 6.13 | 6.02 | 6.03 | 6.49 | 6.37 | 6.57 | 7.85 | 8.11 | 8.14 | 8.23 | 8.01 | 7.90 | 7.92 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,131,600K ÷ $532,100K
= 5.89
The inventory turnover for Smith AO Corporation has exhibited fluctuations over the given periods. The inventory turnover ratio indicates how efficiently the company manages its inventory by showing how many times it sells and replaces its inventory within a specific time frame.
From March 31, 2020, to December 31, 2021, the inventory turnover remained relatively stable, ranging from 6.37 to 8.23. This indicates that during this period, the company efficiently managed its inventory and had a good balance between sales and inventory levels.
However, starting from March 31, 2022, the inventory turnover began to decline consistently until December 31, 2024, dropping to a low of 5.70. A decreasing inventory turnover may suggest that the company is holding onto excess inventory or facing difficulties selling its products, which could tie up capital and lead to potential obsolescence or storage costs.
Further analysis into the reasons behind the decreasing inventory turnover is necessary to determine if there are underlying issues within the company's operations, such as changes in demand, production delays, or supply chain disruptions. Smith AO Corporation may need to review its inventory management strategies and optimize its inventory levels to improve efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024