Crane Company (CR)
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 | 1,263,400 | 1,400,400 | 1,368,100 | 1,319,300 | 1,455,800 | 1,604,400 | 1,763,100 | 1,990,300 | 1,982,800 | 1,977,600 | 2,001,100 | 1,524,400 | 1,564,200 | 1,572,800 | 1,543,700 | 1,936,800 | 1,936,500 | 2,240,000 | 2,254,400 | 2,337,300 |
| Inventory | US$ in thousands | 380,400 | 398,100 | 389,600 | 383,800 | 353,100 | 350,900 | 360,800 | 492,900 | 439,800 | 435,700 | 442,900 | 471,300 | 440,900 | 445,800 | 456,900 | 436,900 | 438,700 | 456,000 | 475,100 | 489,500 |
| Inventory turnover | 3.32 | 3.52 | 3.51 | 3.44 | 4.12 | 4.57 | 4.89 | 4.04 | 4.51 | 4.54 | 4.52 | 3.23 | 3.55 | 3.53 | 3.38 | 4.43 | 4.41 | 4.91 | 4.75 | 4.77 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,263,400K ÷ $380,400K
= 3.32
Crane Company's inventory turnover has shown fluctuation over the past few years, ranging from a low of 3.23 to a high of 4.91. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company's inventory is sold and replaced over a specific period.
The trend in Crane Company's inventory turnover indicates a gradual decline from the peak of 4.91 in September 2020 to the lowest point of 3.23 in March 2022. This decline may suggest potential inventory management issues, such as overstocking or slow-moving inventory.
While there was a slight improvement in inventory turnover in June and September 2022, the ratio dropped again in December 2022 and March 2023. However, there was a notable increase in June 2023, reaching 4.89, which indicates a positive trend in managing and selling inventory efficiently.
The inventory turnover ratio decreased in December 2023, reaching 4.12, followed by a further decline in March 2024 to 3.44. This downward trend could be concerning as a lower inventory turnover ratio may indicate inefficiencies in inventory management, potentially leading to higher carrying costs and obsolete inventory.
Overall, Crane Company's inventory turnover performance has been somewhat volatile, with fluctuations that may warrant a closer examination of the company's inventory management practices to identify areas for improvement and maintain efficient operations.
Peer comparison
Dec 31, 2024
Dec 31, 2024