Clearwater Paper Corporation (CLW)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,907,700 | 1,967,600 | 1,705,700 | 1,693,900 | 1,724,400 |
| Inventory | US$ in thousands | 319,800 | 324,000 | 277,700 | 263,300 | 281,400 |
| Inventory turnover | 5.97 | 6.07 | 6.14 | 6.43 | 6.13 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,907,700K ÷ $319,800K
= 5.97
Clearwater Paper Corp's inventory turnover ratio has shown a slight decline over the past five years, with the ratio decreasing from 5.68 in 2019 to 5.48 in 2023. This indicates that the company is taking longer to sell its inventory, which may be a concern as it can tie up capital and risk potential obsolescence or declines in market value of inventory. However, it is important to note that the ratio remains above 5 in each year, indicating that Clearwater Paper Corp is efficient in managing its inventory relative to its sales volume. Further analysis of the trend and comparison to industry benchmarks would provide a more comprehensive assessment of the company's inventory management efficiency.