Granite Construction Incorporated (GVA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,487,310 | 3,274,060 | 2,949,790 | 3,831,020 | 3,567,230 |
| Inventory | US$ in thousands | 103,898 | 86,809 | 61,965 | 62,471 | 88,885 |
| Inventory turnover | 33.56 | 37.72 | 47.60 | 61.32 | 40.13 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,487,310K ÷ $103,898K
= 33.56
Granite Construction Inc. has demonstrated a consistent trend of effectively managing its inventory turnover in recent years. The inventory turnover ratio measures the efficiency of a company in selling its inventory over a specific period.
From 2019 to 2023, Granite Construction Inc.'s inventory turnover ratio has shown a gradual decrease, indicative of a decline in the frequency of inventory turnover. This trend suggests that the company may be carrying more inventory over time, possibly due to factors such as changes in production levels, sales patterns, or supply chain disruptions.
While a lower inventory turnover ratio can sometimes indicate inefficiencies in managing inventory, it is essential to consider the industry norms and specific business circumstances before drawing definitive conclusions. Further analysis of inventory holding costs, demand forecasting accuracy, and overall operational efficiency would provide a more comprehensive understanding of Granite Construction Inc.'s inventory management practices.
Peer comparison
Dec 31, 2023