Crane NXT Co (CXT)
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 | 821,700 | 794,500 | 749,700 | 724,000 | 1,044,100 | 1,340,400 | 1,638,600 | 1,637,400 | 1,682,300 | 1,721,400 | 1,792,100 | 2,086,100 | 2,073,500 | 2,002,900 | 1,889,900 | 1,837,900 | 1,796,200 | 1,888,100 | 1,939,200 | 2,049,400 |
| Inventory | US$ in thousands | 144,800 | 169,800 | 171,000 | 166,100 | 157,100 | 165,900 | 173,800 | 492,900 | 439,800 | 435,700 | 442,900 | 471,300 | 449,100 | 445,800 | 456,900 | 436,900 | 429,700 | 456,000 | 475,100 | 489,500 |
| Inventory turnover | 5.67 | 4.68 | 4.38 | 4.36 | 6.65 | 8.08 | 9.43 | 3.32 | 3.83 | 3.95 | 4.05 | 4.43 | 4.62 | 4.49 | 4.14 | 4.21 | 4.18 | 4.14 | 4.08 | 4.19 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $821,700K ÷ $144,800K
= 5.67
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by calculating the number of times inventory is sold and replaced within a specific time period. For Crane NXT Co, the inventory turnover ratio has fluctuated over the past years.
From March 31, 2020, to December 31, 2022, the inventory turnover ratio remained relatively stable, ranging between 3.83 and 4.62. This indicates that the company effectively turned over its inventory approximately 4 times per year during this period.
However, there was a noticeable spike in the inventory turnover ratio in June 30, 2023, and September 30, 2023, reaching 9.43 and 8.08, respectively. These unusually high numbers suggest a significant increase in the speed at which inventory was sold and replaced during these quarters, possibly due to factors like increased demand, efficient inventory management, or seasonal variations.
Subsequently, the inventory turnover ratio decreased to more normal levels in the following quarters, stabilizing around 4.36 to 5.67 from March 31, 2024, to December 31, 2024. This could indicate a return to more typical inventory management practices for Crane NXT Co.
Overall, a higher inventory turnover ratio generally suggests effective inventory management and liquidity, while a lower ratio may signal slower sales, overstocking, or inefficient inventory control. Monitoring changes in the inventory turnover ratio can provide insights into a company's operational efficiency and inventory management practices over time.
Peer comparison
Dec 31, 2024
Dec 31, 2024