AdvanSix Inc (ASIX)

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	1,468,079	1,437,203	1,567,540	1,681,210	1,722,525	1,754,540	1,674,282	1,554,293	1,494,191	1,411,479	1,306,100	1,144,199	1,095,738	798,860	816,309	922,779	920,143	1,267,963	1,329,898	1,367,481
Inventory	US$ in thousands	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	171,700	162,479	138,234	140,598
Inventory turnover		6.93	6.27	6.94	7.48	7.99	11.07	10.77	9.51	9.99	9.88	9.32	8.07	6.08	4.59	4.44	5.84	5.36	7.80	9.62	9.73

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,468,079K ÷ $211,831K
= 6.93

To analyze AdvanSix Inc's inventory turnover, we consider the trend over the past eight quarters. Inventory turnover is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

The inventory turnover for AdvanSix Inc has fluctuated over the quarters provided. In Q1 2022, the company had an inventory turnover of 8.99, which increased to 10.22 in Q2 2022 before peaking at 10.51 in Q3 2022. This indicates that during this period, the company was selling and replacing its inventory at a relatively fast pace.

However, the inventory turnover started to decline in subsequent quarters. By Q4 2022, the ratio dropped to 7.57 and continued to decrease to 7.06 in Q1 2023, 6.50 in Q2 2023, and 5.85 in Q3 2023. The most recent data point shows an inventory turnover of 6.46 in Q4 2023. This declining trend over multiple quarters suggests that AdvanSix Inc may be holding onto its inventory for longer periods, which could indicate inefficiencies in inventory management or slower sales.

Overall, AdvanSix Inc's inventory turnover has shown volatility and a downward trend in recent quarters. Further analysis and investigation into the factors impacting inventory management and sales may be necessary to improve efficiency and liquidity.