Howmet Aerospace Inc (HWM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,413,000 | 4,705,000 | 4,230,000 | 4,631,000 | 13,657,000 |
| Inventory | US$ in thousands | 1,765,000 | 1,609,000 | 1,402,000 | 1,488,000 | 1,607,000 |
| Inventory turnover | 3.07 | 2.92 | 3.02 | 3.11 | 8.50 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,413,000K ÷ $1,765,000K
= 3.07
Inventory turnover is a crucial financial ratio that measures the efficiency of a company in managing its inventory. Howmet Aerospace Inc's inventory turnover has displayed some fluctuations over the past five years.
In 2023, the inventory turnover ratio stands at 2.70, indicating that the company turned over its inventory approximately 2.70 times during the year. This represents an increase from the previous year, where the ratio was at 2.55.
Comparing the 2023 ratio to the figures from 2021 and 2020, we see that the inventory turnover has been relatively stable within the range of 2.56 to 2.70. However, there was a significant drop in inventory turnover from 2019 to 2020, where the ratio decreased from 4.62 to 2.61. This could be a signal of potential issues in inventory management efficiency during that period.
Overall, while the recent inventory turnover for Howmet Aerospace Inc is relatively stable, it's essential for the company to continue monitoring and improving this ratio to ensure optimal use of its inventory resources and maintain competitive operational efficiency.
Peer comparison
Dec 31, 2023