Huntington Ingalls Industries Inc (HII)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,082,000 | 1,150,000 | 1,064,000 | 984,000 | 973,000 |
| Inventory | US$ in thousands | 208,000 | 186,000 | 183,000 | 161,000 | 137,000 |
| Inventory turnover | 5.20 | 6.18 | 5.81 | 6.11 | 7.10 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,082,000K ÷ $208,000K
= 5.20
Huntington Ingalls Industries Inc's inventory turnover has shown a decreasing trend over the past five years, declining from 7.10 in December 31, 2020, to 5.20 in December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may suggest potential issues such as overstocking, slowing demand, or inefficiencies in the production or sales processes. The decreasing trend in inventory turnover should be carefully monitored by stakeholders as it can impact cash flow, working capital management, and overall profitability of the company.
Peer comparison
Dec 31, 2024
Company name
Symbol
Inventory turnover
Huntington Ingalls Industries Inc
HII
5.20
General Dynamics Corporation
GD
0.36