AdvanSix Inc (ASIX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,364,620 | 1,368,510 | 1,631,160 | 1,410,500 | 1,024,170 |
| Inventory | US$ in thousands | 212,386 | 211,831 | 215,502 | 149,570 | 180,085 |
| Inventory turnover | 6.43 | 6.46 | 7.57 | 9.43 | 5.69 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,364,620K ÷ $212,386K
= 6.43
AdvanSix Inc's inventory turnover has shown fluctuations over the past five years. The ratio increased from 5.69 in December 31, 2020, to 9.43 in December 31, 2021, indicating an improvement in inventory management efficiency. However, there was a slight decrease in the inventory turnover to 7.57 in December 31, 2022, followed by further declines to 6.46 in December 31, 2023, and 6.43 in December 31, 2024.
These subsequent decreases suggest a slowdown in the rate at which AdvanSix Inc is converting its inventory into sales or revenue. While the company initially managed its inventory efficiently, it appears that there have been challenges in maintaining the same level of turnover in recent years. It may be beneficial for AdvanSix Inc to assess its inventory management practices to address the declining trend and potentially improve operational efficiency.
Peer comparison
Dec 31, 2024