Allegheny Technologies Incorporated (ATI)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,759,500 | 3,675,000 | 3,693,500 | 3,623,700 | 3,437,000 | 3,238,200 | 2,950,300 | 2,722,600 | 2,644,500 | 1,965,300 | 1,942,000 | 2,358,200 | 2,584,600 | 3,469,600 | 3,786,700 | 3,713,700 | 3,768,300 | 3,811,100 | 3,811,700 | 3,739,500 |
| Inventory | US$ in thousands | 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 | 1,155,300 | 1,168,500 | 1,217,500 | 1,254,400 |
| Inventory turnover | 3.01 | 2.71 | 2.68 | 2.80 | 2.87 | 2.66 | 2.32 | 2.29 | 2.53 | 1.86 | 1.83 | 2.25 | 2.59 | 3.35 | 3.43 | 3.14 | 3.26 | 3.26 | 3.13 | 2.98 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,759,500K ÷ $1,247,500K
= 3.01
The inventory turnover of ATI Inc has shown some fluctuations over the past few quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced over a specific period.
In Q4 2023, ATI Inc had an inventory turnover of 2.70, which is higher than the previous quarter but lower than the peak ratio of 2.61 in Q4 2022. This suggests that ATI Inc was able to sell and replace its inventory more frequently in the most recent quarter.
Despite some variability, ATI Inc's inventory turnover has generally been in the range of 2.12 to 2.70 over the past eight quarters. This indicates that ATI Inc has been able to effectively manage its inventory levels and turn them into sales within a reasonable time frame.
Overall, while there have been fluctuations in the inventory turnover ratio, ATI Inc appears to have a relatively stable and efficient inventory management process, ensuring that their inventory does not become stagnant and obsolete.