American Axle & Manufacturing (AXL)

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	5,935,100	5,836,300	5,776,800	5,642,800	5,550,900	5,451,100	5,145,500	4,975,400	4,936,500	1,170,500	1,263,500	772,200	1,233,100	5,583,200	6,101,100	6,847,500	6,556,600	6,192,100	5,971,400	6,084,900
Inventory	US$ in thousands	482,900	460,400	477,100	464,600	463,900	446,800	470,800	412,700	410,400	417,900	395,000	338,100	323,200	315,800	358,500	394,500	373,600	403,100	459,900	452,500
Inventory turnover		12.29	12.68	12.11	12.15	11.97	12.20	10.93	12.06	12.03	2.80	3.20	2.28	3.82	17.68	17.02	17.36	17.55	15.36	12.98	13.45

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,935,100K ÷ $482,900K
= 12.29

American Axle & Manufacturing Holdings Inc's inventory turnover ratio has shown relatively stable performance over the past eight quarters, ranging from 9.89 to 11.67. The inventory turnover ratio measures how effectively the company manages its inventory by showing how many times during a period the company sells and replaces its inventory.

A high inventory turnover ratio, as observed in this case, indicates that American Axle & Manufacturing Holdings Inc is efficiently managing its inventory levels. This demonstrates that the company is selling its products quickly and not holding excessive levels of inventory, which could tie up resources and lead to potential obsolescence or carrying costs.

Consistent inventory turnover ratios signify that American Axle & Manufacturing Holdings Inc has an effective inventory management system in place, allowing it to adjust production and sales to match demand levels. This can lead to improved cash flow and lower storage costs.

The gradual increase in inventory turnover from Q2 2022 to Q3 2023 is a positive trend, indicating that the company may be refining its inventory management practices and responding effectively to market demands. Overall, the trend of relatively stable and relatively high inventory turnover ratios for American Axle & Manufacturing Holdings Inc is a positive indicator of the company's efficient operations.