Astec Industries Inc (ASTE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,295,100 | 1,244,000 | 1,078,800 | 986,200 | 1,143,540 |
| Inventory | US$ in thousands | 455,600 | 393,400 | 298,700 | 249,700 | 294,500 |
| Inventory turnover | 2.84 | 3.16 | 3.61 | 3.95 | 3.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,295,100K ÷ $455,600K
= 2.84
Astec Industries Inc.'s inventory turnover has exhibited a declining trend over the past five years. The inventory turnover ratio decreased from 3.16 in 2019 to 2.21 in 2023. This suggests that the company is holding onto its inventory for a longer period before selling it. A lower inventory turnover ratio may indicate inefficiencies in inventory management, such as overstocking or slow-moving inventory.
The decreasing trend in inventory turnover could also raise concerns about the company's liquidity and working capital management. It may imply that Astec Industries Inc. is tying up more of its funds in inventory, potentially impacting its cash flow and liquidity position.
Overall, the declining inventory turnover trend for Astec Industries Inc. warrants further analysis and scrutiny into the company's inventory management practices to identify areas for improvement and to optimize operational efficiency.
Peer comparison
Dec 31, 2023