Curtiss-Wright Corporation (CW)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,391,180 | 2,160,120 | 2,149,140 | 1,550,110 | 1,589,220 |
| Inventory | US$ in thousands | 510,033 | 483,113 | 411,567 | 428,879 | 424,835 |
| Inventory turnover | 4.69 | 4.47 | 5.22 | 3.61 | 3.74 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,391,180K ÷ $510,033K
= 4.69
Inventory turnover is a key metric used to assess how efficiently a company is managing its inventory. It indicates the number of times a company sells and replaces its inventory over a specific period. In the case of Curtiss-Wright Corp., the inventory turnover ratios for the past five years have been as follows:
- Dec 31, 2023: 3.49
- Dec 31, 2022: 3.32
- Dec 31, 2021: 3.82
- Dec 31, 2020: 3.61
- Dec 31, 2019: 3.74
The inventory turnover ratios have been relatively stable over the years, ranging from 3.32 to 3.82. This consistency suggests that Curtiss-Wright Corp. has been effectively managing its inventory levels and converting them into sales. A higher inventory turnover ratio generally indicates better inventory management, as it implies that the company is selling its products quickly and efficiently.
However, it's essential to consider industry norms and company-specific factors when interpreting inventory turnover ratios. Comparing Curtiss-Wright Corp.'s ratios with those of its peers or industry benchmarks can provide a more meaningful assessment of its inventory management efficiency. Additionally, analyzing trends in inventory turnover over time can help identify any significant changes or areas for improvement in the company's operations.
Peer comparison
Dec 31, 2023