BWX Technologies Inc (BWXT)
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 | 2,048,447 | 2,232,989 | 2,083,256 | 1,964,304 | 1,875,716 | 1,802,541 | 1,765,526 | 1,707,202 | 1,680,899 | 1,660,752 | 1,623,001 | 1,585,818 | 1,573,797 | 1,544,512 | 1,556,765 | 1,548,482 | 1,548,119 | 1,495,426 | 1,479,375 | 1,449,864 |
| Inventory | US$ in thousands | 40,300 | 37,500 | 32,300 | 41,400 | 27,400 | 31,600 | 30,200 | 30,000 | 22,900 | 31,800 | 26,200 | 16,600 | 16,300 | 14,900 | 14,800 | 13,900 | 15,000 | 13,000 | 12,000 | 11,600 |
| Inventory turnover | 50.83 | 59.55 | 64.50 | 47.45 | 68.46 | 57.04 | 58.46 | 56.91 | 73.40 | 52.22 | 61.95 | 95.53 | 96.55 | 103.66 | 105.19 | 111.40 | 103.21 | 115.03 | 123.28 | 124.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,048,447K ÷ $40,300K
= 50.83
The inventory turnover ratio of BWX Technologies Inc has shown fluctuations over the past few years. The trend indicates a gradual decrease in inventory turnover, which suggests that the company is taking more time to sell its inventory. A higher inventory turnover ratio is generally preferred as it implies that the company is efficiently managing its inventory and converting it into sales quickly.
From the data provided, we observe that the inventory turnover ratio was relatively high in early 2020, but it started to decline consistently throughout the following years. By the end of 2024, the inventory turnover ratio had decreased significantly, indicating that BWX Technologies Inc may be experiencing challenges in efficiently managing its inventory levels.
A declining inventory turnover ratio can be a cause for concern as it may lead to higher holding costs, potential obsolescence, or excess inventory risk. The company may need to reassess its inventory management strategies to improve efficiency and ensure optimal use of resources. Monitoring and addressing the inventory turnover ratio is crucial for maintaining a healthy balance between inventory levels and sales volume.
Peer comparison
Dec 31, 2024
Dec 31, 2024