Warrior Met Coal Inc (HCC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,145,970 | 946,415 | 701,352 | 757,019 | 889,258 |
| Inventory | US$ in thousands | 183,949 | 154,039 | 59,619 | 118,713 | 97,901 |
| Inventory turnover | 6.23 | 6.14 | 11.76 | 6.38 | 9.08 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,145,970K ÷ $183,949K
= 6.23
Warrior Met Coal Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels. A higher turnover ratio is generally preferred as it suggests that the company is selling its inventory quickly.
In 2021, the inventory turnover ratio was significantly high at 9.78, signaling that Warrior Met Coal Inc was selling its inventory almost 10 times during the year. This could indicate strong demand for the company's products or effective inventory management strategies.
In 2020 and 2019, the inventory turnover ratios were also healthy at 5.55 and 7.67 respectively, indicating a good balance between inventory levels and sales.
However, in 2022, the inventory turnover ratio slightly decreased to 4.79, which could suggest a potential slowdown in sales relative to inventory levels.
In 2023, the inventory turnover ratio improved to 5.15, although it remained below the levels seen in 2021 and 2019.
Overall, Warrior Met Coal Inc's inventory turnover performance has shown some variability, with 2021 standing out as a particularly strong year in terms of inventory management and sales efficiency. Investors and analysts may want to further investigate the factors influencing these fluctuations in inventory turnover over the years.
Peer comparison
Dec 31, 2023