Crane NXT Co (CXT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 821,700 | 737,200 | 2,035,100 | 2,120,300 | 1,930,700 |
| Inventory | US$ in thousands | 144,800 | 157,100 | 439,800 | 449,100 | 438,200 |
| Inventory turnover | 5.67 | 4.69 | 4.63 | 4.72 | 4.41 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $821,700K ÷ $144,800K
= 5.67
Crane NXT Co's inventory turnover has shown a consistent upward trend over the past five years. The ratio increased from 4.41 in 2020 to 5.67 in 2024, indicating that the company is able to sell and replace its inventory more frequently. This improvement suggests efficient inventory management and possibly a quicker cash conversion cycle. However, it is important to further analyze the underlying reasons for this increase to ensure that it is not due to unsustainable factors such as markdowns or inventory write-offs. Overall, the rising trend in inventory turnover reflects positively on Crane NXT Co's operations and suggests potential improvements in working capital management.
Peer comparison
Dec 31, 2024