Huntington Ingalls Industries Inc (HII)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,027,000 | 1,109,000 | 1,110,000 | 1,093,000 | 1,086,000 | 1,014,000 | 1,005,000 | 994,000 | 994,000 | 1,023,000 | 1,027,000 | 1,017,000 | 984,000 | 955,000 | 942,000 | 954,000 | 960,000 | 954,000 | 940,000 | 907,000 |
| Inventory | US$ in thousands | 208,000 | — | — | — | 186,000 | — | — | — | 183,000 | — | — | 120,000 | 161,000 | 122,000 | 127,000 | 122,000 | 137,000 | 127,000 | 123,000 | 117,000 |
| Inventory turnover | 4.94 | — | — | — | 5.84 | — | — | — | 5.43 | — | — | 8.48 | 6.11 | 7.83 | 7.42 | 7.82 | 7.01 | 7.51 | 7.64 | 7.75 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,027,000K ÷ $208,000K
= 4.94
The inventory turnover ratio is used to measure how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a specific period.
Based on the provided data for Huntington Ingalls Industries Inc, the inventory turnover has shown fluctuating trends over the past few years. The inventory turnover ratio ranged between 5.43 and 8.48 during the period from March 31, 2022, to December 31, 2024.
In general, a higher inventory turnover ratio implies that the company is selling goods more quickly, which can be seen as a positive indicator of inventory management efficiency. Conversely, a lower ratio may suggest slower inventory turnover and potential issues such as overstocking or lower demand for the company's products.
Huntington Ingalls Industries Inc experienced a dip in the inventory turnover ratio from 7.83 on September 30, 2021, to 6.11 on December 31, 2021, followed by a slight recovery to 8.48 on March 31, 2022. However, the ratio decreased to 4.94 by December 31, 2024.
The declining trend in the inventory turnover ratio from 8.48 on March 31, 2022, to 4.94 on December 31, 2024, could indicate potential issues with managing inventory levels efficiently or changes in the demand for the company's products. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's inventory management performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024