BWX Technologies Inc (BWXT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,048,450 | 1,875,720 | 1,680,900 | 1,573,800 | 1,548,120 |
| Inventory | US$ in thousands | 40,300 | 27,400 | 22,900 | 16,300 | 15,000 |
| Inventory turnover | 50.83 | 68.46 | 73.40 | 96.55 | 103.21 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,048,450K ÷ $40,300K
= 50.83
Inventory turnover ratio measures the efficiency with which BWX Technologies Inc manages its inventory. A higher inventory turnover indicates that the company is selling its inventory more frequently, which is generally favorable as it reduces the risk of obsolete inventory and improves cash flow.
Based on the data provided, BWX Technologies Inc's inventory turnover has shown a decreasing trend over the past five years.
- In 2020, the inventory turnover was 103.21, which was exceptionally high, indicating that the company sold its entire inventory more than 100 times during the year.
- In 2021, the inventory turnover decreased slightly to 96.55, still indicating strong efficiency in managing inventory.
- However, from 2022 to 2024, the inventory turnover experienced significant declines, dropping to 73.40, 68.46, and then 50.83, respectively.
- The decreasing trend suggests that BWX Technologies Inc may be holding onto its inventory for longer periods before selling it, which could tie up capital and increase the risk of obsolescence.
It is essential for BWX Technologies Inc to monitor and improve its inventory turnover to ensure optimized inventory management, efficient cash flow, and reduced carrying costs. Further analysis and potential operational adjustments may be necessary to reverse the declining trend in inventory turnover over the coming years.
Peer comparison
Dec 31, 2024