Granite Construction Incorporated (GVA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,434,880 | 3,112,740 | 2,931,760 | 2,704,500 | 3,217,670 |
| Inventory | US$ in thousands | 108,175 | 103,898 | 86,809 | 61,965 | 82,362 |
| Inventory turnover | 31.75 | 29.96 | 33.77 | 43.65 | 39.07 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,434,880K ÷ $108,175K
= 31.75
Granite Construction Incorporated's inventory turnover has displayed fluctuating trends over the past five years. The inventory turnover ratio, which measures the efficiency of inventory management, has shown an increasing trend from 39.07 in December 2020 to 43.65 in December 2021. This improvement indicates that the company was able to sell its inventory more frequently in 2021 compared to the previous year.
However, the trend reversed in the subsequent years, with inventory turnover decreasing to 33.77 in December 2022, 29.96 in December 2023, and then rising slightly to 31.75 in December 2024. A declining inventory turnover ratio may suggest inefficiencies in managing inventory levels or challenges in matching supply with demand.
Overall, while Granite Construction Incorporated experienced a peak in inventory turnover in 2021, it is important for the company to closely monitor and optimize its inventory management practices to ensure efficient utilization of resources and maintain a healthy balance between inventory levels and sales volume.
Peer comparison
Dec 31, 2024