Everus Construction Group Inc (ECG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	2,532,120	2,423,200	1,803,700
Inventory	US$ in thousands	42,709	36,844	—
Inventory turnover		59.29	65.77	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,532,120K ÷ $42,709K
= 59.29

The inventory turnover for Everus Construction Group Inc has shown a decreasing trend over the last two years, dropping from 65.77 in 2022 to 59.29 in 2023. This indicates that the company is selling its inventory at a slower rate in 2023 compared to the previous year. A high inventory turnover ratio is generally seen as positive, suggesting efficient management of inventory and quick sales cycles. However, a declining inventory turnover ratio may imply inefficiency in inventory management, excess stock levels, or a slowdown in sales. Further analysis is needed to understand the underlying reasons for this decline and to implement strategies for improvement if necessary.