Haynes International Inc (HAYN)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 544,026 | 529,519 | 510,168 | 489,249 | 460,092 | 432,512 | 397,895 | 374,959 | 354,466 | 342,372 | 336,667 | 338,507 | 356,665 | 377,002 | 412,832 | 443,805 | 464,101 | 469,692 | 466,921 | 461,690 |
| Inventory | US$ in thousands | 415,227 | 414,077 | 411,697 | 397,481 | 390,535 | 357,556 | 344,088 | 292,097 | 271,423 | 248,495 | 230,726 | 226,865 | 236,313 | 246,124 | 263,885 | 280,337 | 282,019 | 258,802 | 269,138 | 272,025 |
| Inventory turnover | 1.31 | 1.28 | 1.24 | 1.23 | 1.18 | 1.21 | 1.16 | 1.28 | 1.31 | 1.38 | 1.46 | 1.49 | 1.51 | 1.53 | 1.56 | 1.58 | 1.65 | 1.81 | 1.73 | 1.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $544,026K ÷ $415,227K
= 1.31
The inventory turnover ratio of Haynes International Inc. has fluctuated over the past eight quarters, ranging from 1.02 to 1.19. The inventory turnover ratio measures how efficiently the company manages its inventory levels by indicating the number of times the inventory is sold and replaced within a specific period.
A higher inventory turnover ratio is generally seen as positive as it signifies that the company is selling its inventory quickly, which can lead to higher cash flows and reduced risk of inventory obsolescence. In contrast, a lower inventory turnover ratio may indicate slower sales or excess inventory, potentially tying up funds and leading to higher carrying costs.
In the case of Haynes International Inc., the fluctuations in the inventory turnover ratio suggest varying levels of inventory management efficiency. For example, the higher ratios in Q1 2024 and Q4 2023 indicate an improvement in selling inventory quickly compared to the lower ratios in Q3 2022 and Q4 2022.
Therefore, further analysis and investigation into the company's inventory management practices, sales trends, and supply chain efficiencies may be necessary to fully understand the reasons behind the fluctuations in the inventory turnover ratio over the specified quarters.
Peer comparison
Dec 31, 2023
Dec 31, 2023