Warrior Met Coal Inc (HCC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,271,770 | 1,145,970 | 946,415 | 701,352 | 757,019 |
| Inventory | US$ in thousands | 207,590 | 183,949 | 154,039 | 59,619 | 118,713 |
| Inventory turnover | 6.13 | 6.23 | 6.14 | 11.76 | 6.38 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,271,770K ÷ $207,590K
= 6.13
Warrior Met Coal Inc's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a specific period.
In 2020, the inventory turnover ratio was 6.38, indicating that Warrior Met Coal Inc turned over its inventory approximately 6.38 times during that year. This suggests a moderate efficiency in managing inventory levels.
The following year, in 2021, the inventory turnover ratio significantly increased to 11.76, reflecting a notable improvement in inventory management efficiency. A higher inventory turnover ratio generally indicates that the company is selling its products more quickly, which could result in better cash flow and reduced storage costs.
However, in 2022, the inventory turnover ratio dropped to 6.14, slightly lower than the level seen in 2020. This decrease may suggest a slowdown in sales relative to inventory levels, potentially leading to excess inventory.
In 2023 and 2024, the inventory turnover ratios remained relatively stable at 6.23 and 6.13, respectively. These figures indicate that Warrior Met Coal Inc maintained a consistent level of inventory turnover during these years.
Overall, changes in Warrior Met Coal Inc's inventory turnover ratios suggest varying levels of efficiency in managing inventory. Monitoring this ratio can provide insights into the company's operational performance and effectiveness in inventory management.
Peer comparison
Dec 31, 2024