Clearwater Paper Corporation (CLW)

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	1,907,700	1,957,500	1,982,900	1,995,700	1,967,500	1,853,400	1,793,600	1,761,000	1,705,700	1,687,300	1,668,200	1,642,000	1,693,900	1,713,710	1,753,353	1,758,768	1,722,185	1,907,619	1,862,180	1,846,983
Inventory	US$ in thousands	319,800	333,300	340,400	345,500	324,000	326,800	287,700	281,800	277,700	286,400	282,900	293,100	263,300	256,400	235,300	240,500	281,400	282,395	287,863	285,909
Inventory turnover		5.97	5.87	5.83	5.78	6.07	5.67	6.23	6.25	6.14	5.89	5.90	5.60	6.43	6.68	7.45	7.31	6.12	6.76	6.47	6.46

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,907,700K ÷ $319,800K
= 5.97

Clearwater Paper Corp's inventory turnover ratio has been relatively stable over the past eight quarters, ranging between 5.35 and 5.92. The company's inventory turnover indicates how efficiently it is managing its inventory levels by measuring the number of times a company sells and replaces its inventory within a given period.

A higher inventory turnover ratio typically suggests that Clearwater Paper Corp is selling its products quickly and efficiently, which can lead to lower holding costs and a more streamlined supply chain. The decreasing trend in inventory turnover from Q4 2022 to Q2 2023 may indicate a slight slowdown in the company's sales or stocking up on inventory.

Overall, Clearwater Paper Corp's inventory turnover ratio reflects a healthy balance between managing inventory levels and meeting customer demand effectively. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and profitability.