CVR Energy Inc (CVI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,405,000 | 7,974,000 | 9,766,000 | 7,024,000 | 4,119,000 |
| Inventory | US$ in thousands | 502,000 | 604,000 | 624,000 | 484,000 | 298,000 |
| Inventory turnover | 14.75 | 13.20 | 15.65 | 14.51 | 13.82 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,405,000K ÷ $502,000K
= 14.75
Based on the provided data, the inventory turnover for CVR Energy Inc has shown a generally increasing trend over the years. The inventory turnover ratio indicates how efficiently the company manages its inventory by comparing the cost of goods sold to the average inventory level.
In 2020, the inventory turnover ratio was 13.82, which increased to 14.51 in 2021, further improved to 15.65 in 2022, and then slightly declined to 13.20 in 2023. However, there was a rebound in 2024 with an inventory turnover ratio of 14.75.
A higher inventory turnover ratio generally suggests that the company is efficiently managing its inventory levels and quickly converting inventory into sales. This can be a positive sign as it may indicate effective inventory management practices, reducing the risk of obsolete inventory or storage costs.
Overall, the increasing trend in inventory turnover for CVR Energy Inc up to 2022 followed by a slight dip in 2023 and a subsequent recovery in 2024 is a positive indicator of the company's inventory management efficiency. However, it is essential to monitor this ratio continuously to ensure optimal inventory management practices are maintained.
Peer comparison
Dec 31, 2024