CSW Industrials Inc (CSWI)
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 | 473,546 | 460,989 | 449,658 | 442,095 | 435,214 | 439,523 | 437,374 | 439,690 | 430,306 | 411,255 | 393,244 | 372,403 | 350,842 | 315,192 | 278,862 | 234,406 | 208,788 | 204,219 | 201,935 | 208,821 |
| Inventory | US$ in thousands | 202,764 | 183,731 | 156,791 | 150,749 | 151,386 | 151,203 | 157,042 | 161,569 | 177,909 | 171,879 | 161,463 | 150,114 | 127,442 | 110,761 | 105,005 | 98,086 | 101,560 | 52,090 | 59,441 | 53,753 |
| Inventory turnover | 2.34 | 2.51 | 2.87 | 2.93 | 2.87 | 2.91 | 2.79 | 2.72 | 2.42 | 2.39 | 2.44 | 2.48 | 2.75 | 2.85 | 2.66 | 2.39 | 2.06 | 3.92 | 3.40 | 3.88 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $473,546K ÷ $202,764K
= 2.34
The inventory turnover ratio for CSW Industrials Inc provides insights into how efficiently the company manages its inventory. A higher turnover ratio indicates that the company is selling its inventory more quickly, which is generally favorable as it reduces holding costs and the risk of obsolescence.
Based on the provided data, we observe fluctuations in CSW Industrials Inc's inventory turnover over the reported periods. The ratio ranged from a high of 3.92 on September 30, 2020, to a low of 2.06 on December 31, 2020. This significant fluctuation could be due to varying sales volumes, changes in demand patterns, or adjustments in inventory management practices.
The trend in the inventory turnover ratio shows a general decline from 2020 to 2024, indicating a decrease in the speed at which inventory is being sold. Despite some fluctuations, the trend suggests that CSW Industrials Inc may be facing challenges in effectively managing its inventory turnover efficiency. This could potentially lead to increased holding costs, a higher risk of inventory obsolescence, and reduced liquidity.
It is essential for the company to closely monitor its inventory turnover and implement strategies to improve efficiency, such as better demand forecasting, streamlined inventory management processes, and optimizing product mix. By addressing these challenges, CSW Industrials Inc can enhance its operational effectiveness, improve financial performance, and maintain a competitive edge in the market.
Peer comparison
Dec 31, 2024
Dec 31, 2024