Api Group Corp (APG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,840,000 | 4,988,000 | 4,844,000 | 3,001,000 | 2,831,000 |
| Inventory | US$ in thousands | 143,000 | 150,000 | 163,000 | 69,000 | 64,000 |
| Inventory turnover | 33.85 | 33.25 | 29.72 | 43.49 | 44.23 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,840,000K ÷ $143,000K
= 33.85
The inventory turnover ratio for Api Group Corp over the period from December 31, 2020, to December 31, 2024, exhibits notable fluctuations that reflect changes in inventory management efficiency and sales performance.
In 2020, the inventory turnover stood at 44.23, indicating a high level of inventory efficiency, with the company turning over its inventory approximately 44 times within the year. The following year, 2021, saw a slight decline to 43.49, which suggests a marginal decrease in inventory turnover but still maintained a high-rate efficiency comparable to the previous year.
A more pronounced decrease occurred in 2022, where the ratio dropped significantly to 29.72. This decline may indicate a slowdown in inventory sales, potential overstocking issues, or strategic shifts that resulted in a slower inventory turnover. The reduced turnover ratio could also reflect increased inventory levels or diminished demand for the company's products.
In 2023, the inventory turnover improved modestly to 33.25, signifying a partial recovery in inventory efficiency. This upward trend continued in 2024, reaching 33.85, suggesting further improvement and a stabilization of inventory management practices. Although these figures do not match the peak levels observed in 2020 and 2021, the gradual upward trend in recent years indicates efforts to optimize inventory levels and enhance sales performance.
Overall, the data illustrates that Api Group Corp experienced its highest inventory turnover ratios at the beginning of the period, with a significant decline in 2022, followed by a gradual recovery in subsequent years. This pattern underscores the company's challenges and subsequent initiatives to improve inventory management efficiency.
Peer comparison
Dec 31, 2024