Astec Industries Inc (ASTE)
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 | 976,900 | 968,900 | 977,800 | 980,900 | 1,007,400 | 1,037,200 | 1,053,500 | 1,044,000 | 1,010,400 | 946,400 | 901,300 | 854,700 | 845,500 | 813,600 | 789,900 | 784,600 | 783,500 | 850,297 | 873,244 | 888,896 |
| Inventory | US$ in thousands | 422,700 | 466,400 | 455,300 | 484,000 | 455,600 | 450,100 | 429,500 | 420,100 | 393,400 | 396,400 | 371,100 | 352,900 | 303,000 | 282,800 | 257,500 | 244,200 | 249,700 | 261,500 | 263,200 | 294,800 |
| Inventory turnover | 2.31 | 2.08 | 2.15 | 2.03 | 2.21 | 2.30 | 2.45 | 2.49 | 2.57 | 2.39 | 2.43 | 2.42 | 2.79 | 2.88 | 3.07 | 3.21 | 3.14 | 3.25 | 3.32 | 3.02 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $976,900K ÷ $422,700K
= 2.31
The inventory turnover of Astec Industries Inc has exhibited a declining trend over the period under review, from 3.02 on March 31, 2020, to 2.31 on December 31, 2024. This indicates that the company is taking longer to sell its inventory on hand. A lower inventory turnover ratio could suggest potential issues such as overstocking, slow-moving inventory, or inefficiencies in the supply chain.
The decreasing trend in inventory turnover may lead to higher carrying costs and the risk of obsolescence. Astec Industries Inc may need to reassess its inventory management practices to improve efficiency and reduce the risk of excess inventory. Monitoring and improving inventory turnover can help enhance cash flow, profitability, and overall operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024