HF Sinclair Corp (DINO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,371,000 | 26,825,400 | 31,389,200 | 15,760,500 | 9,758,220 |
| Inventory | US$ in thousands | 2,495,000 | 2,921,830 | 3,214,530 | 2,122,130 | 1,173,480 |
| Inventory turnover | 10.17 | 9.18 | 9.76 | 7.43 | 8.32 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $25,371,000K ÷ $2,495,000K
= 10.17
HF Sinclair Corp's inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio reflects the efficiency with which the company manages its inventory. A higher turnover indicates that the company is selling its inventory quickly, which can be a positive sign in terms of liquidity and working capital management.
Analyzing the data, we see that in December 2020, the inventory turnover ratio was 8.32 times, suggesting that the company was able to sell and replace its inventory 8.32 times during that year. However, by December 2021, the ratio decreased to 7.43, indicating a slight decrease in inventory turnover efficiency.
Subsequently, there was an increase in the inventory turnover ratio to 9.76 in December 2022, which suggests an improvement in managing inventory levels more efficiently. The ratio slightly decreased to 9.18 in December 2023, but remained at a relatively high level.
The most recent data point, December 31, 2024, shows an increase in inventory turnover to 10.17, indicating that the company is now selling and replacing its inventory more than 10 times a year.
Overall, the trend in inventory turnover for HF Sinclair Corp appears positive, with some fluctuations. The company seems to have improved its inventory management over the years, leading to a higher turnover ratio in the most recent period. This may signal effective inventory control, quicker sales cycles, and potentially improved financial performance.