ArcBest Corp (ARCB)

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	1,799,004	1,794,182	1,824,719	1,820,460	1,817,905	1,812,736	1,778,338	1,778,718	1,762,408	1,732,780	1,678,072	1,617,814	1,554,301	1,503,081	1,469,000	1,385,074	1,370,728	1,040,771	1,041,638	1,097,534
Inventory	US$ in thousands	—	21,421	0	—	—	30,957	33,244	41,061	40,240	32,280	0	42,688	-9,654	30,120	36,355	40,356	37,774	29,562	28,928	33,806
Inventory turnover		—	83.76	—	—	—	58.56	53.49	43.32	43.80	53.68	—	37.90	—	49.90	40.41	34.32	36.29	35.21	36.01	32.47

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,799,004K ÷ $—K
= —

Inventory turnover is a vital financial ratio that provides insight into how effectively a company manages its inventory. In the case of ArcBest Corp, we observe fluctuations in their inventory turnover over the years.

From March 31, 2020, to September 30, 2021, there is a general upward trend in inventory turnover, indicating that ArcBest was able to sell and replace its inventory more frequently during this period. The peak in inventory turnover was observed on September 30, 2021, with a ratio of 49.90, which suggests efficient inventory management during that quarter.

However, a missing value for December 31, 2021, followed by a slight decrease in the succeeding quarters up to March 31, 2022, indicates a potential dip in inventory turnover efficiency. Notably, fluctuations in inventory turnover can be influenced by factors such as seasonal demand, supply chain disruptions, or changes in business operations.

From September 30, 2022, to September 30, 2024, there is a significant increase in inventory turnover, reaching a peak of 83.76 on September 30, 2024. This substantial rise suggests that ArcBest Corp was able to optimize its inventory turnover, potentially due to improved inventory management practices, increased sales, or enhanced operational efficiency.

Overall, analyzing ArcBest Corp's inventory turnover demonstrates its ability to efficiently manage inventory levels and convert them into sales. Monitoring this ratio over time can help assess the company's operational performance and identify potential areas for improvement in inventory management processes.