Axalta Coating Systems Ltd (AXTA)
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 | 4,432,700 | 4,599,600 | 4,581,600 | 4,548,800 | 4,475,200 | 4,406,800 | 4,274,000 | 4,149,600 | 3,982,800 | 3,575,900 | 3,475,500 | 3,184,400 | 3,187,200 | 3,220,200 | 3,352,100 | 3,637,400 | 3,751,800 | 3,818,400 | 4,048,800 | 4,173,800 |
| Inventory | US$ in thousands | 741,100 | 750,000 | 766,700 | 798,600 | 829,600 | 829,400 | 799,500 | 764,000 | 669,700 | 677,900 | 614,500 | 582,200 | 559,900 | 536,700 | 539,300 | 596,100 | 591,600 | 597,300 | 610,900 | 626,800 |
| Inventory turnover | 5.98 | 6.13 | 5.98 | 5.70 | 5.39 | 5.31 | 5.35 | 5.43 | 5.95 | 5.27 | 5.66 | 5.47 | 5.69 | 6.00 | 6.22 | 6.10 | 6.34 | 6.39 | 6.63 | 6.66 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,432,700K ÷ $741,100K
= 5.98
Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times a company sells and replaces its average level of inventory during a certain period. For Axalta Coating Systems Ltd, the trend in inventory turnover over recent quarters shows a consistent and stable performance.
The inventory turnover ratios for each quarter have been relatively high, ranging from 4.09 to 4.81. This indicates that Axalta is able to sell and replace its inventory multiple times throughout the year, which suggests effective inventory management. The higher the inventory turnover ratio, the more efficiently a company is managing its inventory levels.
The slight variations in the inventory turnover ratios from quarter to quarter suggest some fluctuations in the company's sales and inventory levels. However, the overall trend indicates that Axalta is effectively turning over its inventory and not letting excess inventory sit idle for extended periods.
Overall, Axalta Coating Systems Ltd's inventory turnover ratios reflect a consistent and efficient management of its inventory, which is a positive signal for investors and stakeholders regarding the company's operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023