Axalta Coating Systems Ltd (AXTA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,527,600 | 4,564,600 | 4,082,000 | 3,545,100 | 4,145,100 |
| Inventory | US$ in thousands | 741,100 | 829,600 | 669,700 | 559,900 | 591,600 |
| Inventory turnover | 6.11 | 5.50 | 6.10 | 6.33 | 7.01 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,527,600K ÷ $741,100K
= 6.11
Axalta Coating Systems Ltd's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio for Dec 31, 2023, stands at 4.81, showing an improvement from the previous year. This indicates that the company's inventory was converted into sales 4.81 times during the fiscal year, reflecting efficient management of inventory levels.
Comparing this to the ratios of the preceding years, we observe variability in the trend. In 2022, the inventory turnover ratio was 4.18, which was lower than in 2021 (4.46) but higher than in 2020 (4.39). This suggests there may have been some challenges in managing inventory levels efficiently in 2022, affecting the company's ability to convert inventory into sales promptly.
Furthermore, the ratio for 2019 was 4.93, indicating a higher rate of inventory turnover compared to 2023. This implies that in 2019, Axalta Coating Systems Ltd was more effective in managing its inventory levels and converting them into sales.
In conclusion, while the inventory turnover ratio for 2023 improved compared to the previous year, there is a need for consistency and ongoing monitoring to ensure optimal inventory management practices within Axalta Coating Systems Ltd.
Peer comparison
Dec 31, 2023