Axalta Coating Systems Ltd (AXTA)
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 | 4,679,000 | 4,511,200 | 4,473,800 | 4,445,800 | 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 |
| Inventory | US$ in thousands | 734,000 | 818,000 | 745,000 | 751,000 | 741,000 | 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 |
| Inventory turnover | 6.37 | 5.51 | 6.01 | 5.92 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,679,000K ÷ $734,000K
= 6.37
Inventory turnover is a crucial financial ratio that measures how effectively a company manages its inventory. It shows the number of times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.
Analyzing Axalta Coating Systems Ltd's inventory turnover over multiple periods, we observe some fluctuations in the ratio. The trend indicates that for the most recent financial years, the company's inventory turnover has ranged between approximately 5.27 and 6.37 times. A higher inventory turnover generally suggests that the company is efficiently selling its products and restocking inventory, which is favorable as it may reduce storage costs and indicate strong demand for its products.
However, the slight fluctuations in the inventory turnover ratio could imply changes in sales patterns, production levels, or inventory management practices. It is essential to further investigate the drivers behind these fluctuations to determine the underlying factors influencing Axalta's inventory turnover.
Overall, while the inventory turnover ratio for Axalta Coating Systems Ltd has demonstrated a relatively stable range over the periods analyzed, deeper analysis and comparison with industry benchmarks may provide more insights into the company's inventory management performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024