Curtiss-Wright Corporation (CW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,608,610 | 2,391,180 | 2,160,120 | 2,149,140 | 1,550,110 |
| Inventory | US$ in thousands | 541,442 | 510,033 | 483,113 | 411,567 | 428,879 |
| Inventory turnover | 4.82 | 4.69 | 4.47 | 5.22 | 3.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,608,610K ÷ $541,442K
= 4.82
Curtiss-Wright Corporation's inventory turnover has shown a fluctuating trend over the past five years, starting at 3.61 in 2020 and peaking at 5.22 in 2021. This indicates that the company was able to sell and replenish its inventory more efficiently in 2021.
However, in the following years, the inventory turnover ratio decreased slightly to 4.47 in 2022, increased to 4.69 in 2023, and further rose to 4.82 in 2024. While the inventory turnover ratio has generally improved compared to the initial year, it is essential to note the downward trend from the peak in 2021.
Analyzing inventory turnover helps assess how effectively Curtiss-Wright Corporation manages its inventory levels. A higher turnover ratio suggests that the company is selling goods quickly or maintaining lean inventories, which can lead to lower holding costs and potential cash flow benefits. The observed fluctuations in inventory turnover may indicate changes in sales volume, purchasing strategies, or inventory management practices within the organization. Further analysis and comparison with industry benchmarks can provide additional insights into Curtiss-Wright Corporation's operational efficiency and performance in managing its inventory.
Peer comparison
Dec 31, 2024