Arch Resources Inc (ARCH)
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 | 2,639,097 | 2,665,403 | 2,679,306 | 2,715,387 | 2,651,639 | 2,499,633 | 2,309,614 | 2,024,207 | 1,821,727 | 1,557,032 | 1,641,821 | 1,605,408 | 1,668,163 | 1,956,538 | 1,941,959 | 2,074,932 | 1,704,645 | 1,232,637 | 745,225 | 298,777 |
| Inventory | US$ in thousands | 244,261 | 233,213 | 263,310 | 271,155 | 223,015 | 215,172 | 212,752 | 203,997 | 156,734 | 155,870 | 162,531 | 154,395 | 126,008 | 143,396 | 154,690 | 149,986 | 130,898 | 171,543 | 172,841 | 145,607 |
| Inventory turnover | 10.80 | 11.43 | 10.18 | 10.01 | 11.89 | 11.62 | 10.86 | 9.92 | 11.62 | 9.99 | 10.10 | 10.40 | 13.24 | 13.64 | 12.55 | 13.83 | 13.02 | 7.19 | 4.31 | 2.05 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,639,097K ÷ $244,261K
= 10.80
Arch Resources Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company is managing its inventory by calculating how many times inventory is sold and replaced within a certain period. A higher inventory turnover ratio indicates more efficient inventory management.
From Dec 31, 2019, to Sep 30, 2020, Arch Resources Inc experienced a significant increase in inventory turnover, going from 2.05 to 13.64, indicating a substantial improvement in managing inventory during this period.
In 2021, the inventory turnover remained relatively stable, ranging from 10.10 to 13.24, suggesting that the company was able to maintain efficient inventory management practices.
However, in the first three quarters of 2022, there was a slight decrease in inventory turnover compared to the previous year. The ratio ranged from 9.92 to 11.89 during this period, indicating a moderate decline in inventory efficiency.
In the latest quarters of 2023, the inventory turnover has continued to fluctuate between 10.01 and 11.43. While the ratios are still relatively high, they show a slight downward trend compared to earlier periods.
Overall, Arch Resources Inc has demonstrated effective inventory management practices over the years, with some variations in the efficiency of inventory turnover. Monitoring this ratio can help assess the company's ability to convert inventory into sales and generate revenue.
Peer comparison
Dec 31, 2023
Dec 31, 2023