AdvanSix Inc (ASIX)

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	1,364,621	1,410,527	1,384,427	1,372,333	1,368,511	1,339,877	1,468,738	1,585,556	1,631,160	1,665,665	1,588,199	1,468,248	1,410,501	1,328,627	1,228,205	1,070,060	1,024,169	1,048,295	1,062,660	1,167,049
Inventory	US$ in thousands	212,386	213,434	175,827	190,921	211,831	229,199	225,986	224,635	215,502	158,432	155,447	163,396	149,570	142,911	140,105	141,810	180,085	173,873	183,724	158,066
Inventory turnover		6.43	6.61	7.87	7.19	6.46	5.85	6.50	7.06	7.57	10.51	10.22	8.99	9.43	9.30	8.77	7.55	5.69	6.03	5.78	7.38

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,364,621K ÷ $212,386K
= 6.43

Based on the provided data, the inventory turnover for AdvanSix Inc has shown fluctuations over the reported periods. Inventory turnover indicates how many times a company's inventory is sold and replaced over a specific period.

From March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 5.69 to a high of 10.51. The highest turnover was recorded on September 30, 2022, indicating efficient management of inventory during that period. However, there was also a notable decline in inventory turnover to 5.85 on September 30, 2023, which may suggest potential inventory management challenges.

Overall, AdvanSix Inc has demonstrated varying levels of efficiency in managing its inventory turnover. A consistent and optimal inventory turnover rate is essential for a company to ensure timely sales and minimize carrying costs associated with excess inventory.