Crane Company (CR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,263,400 | 1,281,400 | 2,035,100 | 1,938,900 | 1,936,400 |
| Inventory | US$ in thousands | 380,400 | 353,100 | 439,800 | 440,900 | 438,700 |
| Inventory turnover | 3.32 | 3.63 | 4.63 | 4.40 | 4.41 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,263,400K ÷ $380,400K
= 3.32
Crane Company's inventory turnover has shown fluctuations over the past five years. In 2020, the inventory turnover ratio was 4.41, indicating that the company turned over its inventory approximately 4.41 times during that year. The ratio remained relatively stable in 2021 at 4.40 before increasing to 4.63 in 2022, suggesting more efficient management of inventory.
However, there was a notable decrease in inventory turnover to 3.63 in 2023, which could indicate excess or slow-moving inventory, potentially impacting the company's liquidity and profitability. This trend continued in 2024, with the inventory turnover further dropping to 3.32, signaling challenges in effectively managing and selling inventory.
Overall, Crane Company's inventory turnover has fluctuated, highlighting the importance of closely monitoring and optimizing inventory management practices to ensure efficient operations and financial performance.
Peer comparison
Dec 31, 2024