AdvanSix Inc (ASIX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,467,980 | 1,722,530 | 1,494,190 | 1,095,740 | 1,248,960 |
| Inventory | US$ in thousands | 211,831 | 215,502 | 149,570 | 180,085 | 171,700 |
| Inventory turnover | 6.93 | 7.99 | 9.99 | 6.08 | 7.27 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,467,980K ÷ $211,831K
= 6.93
The inventory turnover of AdvanSix Inc has fluctuated over the past five years, ranging from 5.69 in 2020 to 9.43 in 2021. A higher inventory turnover ratio indicates that the company is able to sell its inventory more frequently within a given period, which is generally a positive sign of efficient inventory management.
In this case, we can observe that the inventory turnover ratio decreased in 2020 and 2023 compared to the previous years, suggesting a potential slowdown in sales or an increase in inventory levels. However, the ratio rebounded in 2021, indicating improved efficiency in inventory turnover.
Overall, while the inventory turnover ratio for AdvanSix Inc has shown variability, it remains within a reasonable range, indicating that the company has been able to effectively manage its inventory levels in recent years.
Peer comparison
Dec 31, 2023