Huntington Ingalls Industries Inc (HII)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,150,000 | 1,064,000 | 984,000 | 973,000 | 864,000 |
| Inventory | US$ in thousands | 186,000 | 183,000 | 161,000 | 137,000 | 136,000 |
| Inventory turnover | 6.18 | 5.81 | 6.11 | 7.10 | 6.35 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,150,000K ÷ $186,000K
= 6.18
Huntington Ingalls Industries Inc's inventory turnover ratio, a key efficiency metric, has been consistently strong over the past five years. The company's inventory turnover ratio ranged from 50.47 to 56.14 during this period, indicating that they are efficiently managing their inventory levels.
A higher inventory turnover ratio suggests that the company is selling its products quickly and effectively replenishing its inventory, which minimizes the risk of obsolete or unsold inventory. Huntington Ingalls Industries Inc's inventory turnover ratio averaged 52.64 during the five-year period, showcasing a consistent and efficient management of inventory.
Overall, the trend highlights efficient management of inventory and a successful sales strategy, which could positively impact the company's profitability and cash flow.
Peer comparison
Dec 31, 2023