Howmet Aerospace Inc (HWM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,119,000 | 4,773,000 | 4,103,000 | 3,596,000 | 3,878,000 |
| Inventory | US$ in thousands | 1,840,000 | 1,765,000 | 1,609,000 | 1,402,000 | 1,488,000 |
| Inventory turnover | 2.78 | 2.70 | 2.55 | 2.56 | 2.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,119,000K ÷ $1,840,000K
= 2.78
The inventory turnover for Howmet Aerospace Inc has slightly decreased over the past few years, from 2.61 in December 31, 2020, to 2.78 in December 31, 2024. This indicates that the company is taking longer to sell its inventory in recent years. A lower inventory turnover ratio may suggest inefficiencies in managing inventory levels or challenges in selling products efficiently. It is essential for the company to closely monitor and potentially optimize its inventory management processes to improve its inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024
Company name
Symbol
Inventory turnover
Howmet Aerospace Inc
HWM
2.78
Kaiser Aluminum Corporation
KALU
5.34
Mueller Industries Inc
MLI
5.89
Quanex Building Products
NX
4.31