Allegheny Technologies Incorporated (ATI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,759,500 | 3,437,000 | 2,644,500 | 3,250,200 | 3,768,500 |
| Inventory | US$ in thousands | 1,247,500 | 1,195,700 | 1,046,300 | 997,100 | 1,155,300 |
| Inventory turnover | 3.01 | 2.87 | 2.53 | 3.26 | 3.26 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,759,500K ÷ $1,247,500K
= 3.01
The inventory turnover ratio for ATI Inc has fluctuated over the past five years. In 2019, the company had the highest inventory turnover of 3.02, indicating that inventory was sold and replaced more frequently during that year. However, in the following years, there was a downward trend in the inventory turnover ratio, with values of 2.70 in both 2020 and 2023, indicating a decrease in the efficiency of inventory management.
The inventory turnover ratio for 2021 was 2.36, representing the lowest turnover in the past five years. This could indicate that the company may have experienced challenges in selling its inventory or managing its stock levels efficiently during that year.
Overall, the inventory turnover ratio for ATI Inc has shown some variability, and it is essential for the company to closely monitor and assess its inventory management practices to ensure optimal efficiency in the future.