Astec Industries Inc (ASTE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 977,200 | 1,007,400 | 1,010,400 | 845,500 | 784,300 |
| Inventory | US$ in thousands | 422,700 | 455,600 | 393,400 | 303,000 | 249,700 |
| Inventory turnover | 2.31 | 2.21 | 2.57 | 2.79 | 3.14 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $977,200K ÷ $422,700K
= 2.31
The inventory turnover for Astec Industries Inc has exhibited a declining trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 3.14 in 2020 to 2.79 in 2021, and further declined to 2.57 in 2022. This declining trend continued, with the ratio dropping to 2.21 in 2023 before slightly improving to 2.31 in 2024.
A decreasing inventory turnover typically indicates that the company is taking longer to sell its inventory, which could be concerning as it may imply inefficiencies in managing inventory levels or challenges in converting stock into sales. Astec Industries Inc may need to assess its inventory management practices, such as optimizing ordering quantities or improving demand forecasting, to enhance its operational efficiency and inventory turnover rate.
Peer comparison
Dec 31, 2024