Allegheny Technologies Incorporated (ATI)
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 | 3,463,900 | 4,256,400 | 5,092,000 | 5,061,000 | 5,060,400 | 4,168,500 | 3,354,700 | 3,302,000 | 3,121,800 | 2,940,300 | 2,735,300 | 2,524,600 | 2,466,600 | 2,436,500 | 2,353,200 | 2,475,300 | 2,689,300 | 2,925,500 | 3,224,600 | 3,431,700 |
| Inventory | US$ in thousands | 1,353,000 | 1,414,500 | 1,317,500 | 1,284,900 | 1,247,500 | 1,353,900 | 1,380,400 | 1,293,800 | 1,195,700 | 1,216,900 | 1,270,900 | 1,189,000 | 1,046,300 | 1,055,800 | 1,059,000 | 1,047,800 | 997,100 | 1,035,900 | 1,103,500 | 1,181,100 |
| Inventory turnover | 2.56 | 3.01 | 3.86 | 3.94 | 4.06 | 3.08 | 2.43 | 2.55 | 2.61 | 2.42 | 2.15 | 2.12 | 2.36 | 2.31 | 2.22 | 2.36 | 2.70 | 2.82 | 2.92 | 2.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,463,900K ÷ $1,353,000K
= 2.56
Inventory turnover is a key financial ratio that provides insight into how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by average inventory for a specific period. A high inventory turnover ratio indicates that a company is able to sell its inventory quickly, which can be a positive sign of efficient operations. On the other hand, a low inventory turnover may suggest issues such as overstocking or slow-moving inventory.
Analyzing the inventory turnover trend of Allegheny Technologies Incorporated from March 31, 2020, to December 31, 2024, reveals fluctuations in the ratio over time. The trend shows some variability, with the ratio ranging from a low of 2.12 on March 31, 2022, to a high of 4.06 on December 31, 2023. This variability suggests potential changes in the company's inventory management practices or sales performance during the period.
It is important to note that a single ratio value cannot provide a complete analysis of inventory turnover efficiency. Instead, it is essential to consider the trend over multiple periods to gain a more comprehensive understanding. In the case of Allegheny Technologies Incorporated, the inventory turnover ratio has shown some fluctuations, indicating potential shifts in inventory management strategies or market conditions affecting sales velocity.