Green Plains Renewable Energy Inc (GPRE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,103,840	3,525,010	2,625,110	1,812,160	2,534,150
Inventory	US$ in thousands	169,912	217,065	195,518	229,344	210,156
Inventory turnover		18.27	16.24	13.43	7.90	12.06

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,103,840K ÷ $169,912K
= 18.27

The inventory turnover ratio for Green Plains Inc has been showing a positive trend over the past five years. The ratio has been consistently increasing from 6.72 in 2020 to 14.38 in 2023, indicating that the company is selling its inventory more efficiently.

A higher inventory turnover ratio suggests that Green Plains Inc is selling its inventory quickly, which is a positive sign as it minimizes the risk of inventory obsolescence and helps in maintaining healthy cash flows. This trend indicates that the company is effectively managing its inventory levels and is able to convert its inventory into sales at a faster rate.

Overall, the increasing trend in Green Plains Inc's inventory turnover ratio reflects improved efficiency in managing its inventory, which can lead to better financial performance and profitability for the company.