Howmet Aerospace Inc (HWM)
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 | 5,255,000 | 5,196,000 | 5,126,000 | 4,966,000 | 4,773,000 | 4,653,000 | 4,526,000 | 4,317,000 | 4,103,000 | 3,931,000 | 3,803,000 | 3,673,000 | 3,596,000 | 3,530,000 | 3,502,000 | 3,568,000 | 5,171,000 | 6,969,000 | 8,869,000 | 10,885,000 |
| Inventory | US$ in thousands | 1,840,000 | 1,902,000 | 1,848,000 | 1,783,000 | 1,765,000 | 1,748,000 | 1,715,000 | 1,662,000 | 1,609,000 | 1,612,000 | 1,563,000 | 1,483,000 | 1,402,000 | 1,420,000 | 1,456,000 | 1,453,000 | 1,488,000 | 1,592,000 | 1,673,000 | 2,512,000 |
| Inventory turnover | 2.86 | 2.73 | 2.77 | 2.79 | 2.70 | 2.66 | 2.64 | 2.60 | 2.55 | 2.44 | 2.43 | 2.48 | 2.56 | 2.49 | 2.41 | 2.46 | 3.48 | 4.38 | 5.30 | 4.33 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,255,000K ÷ $1,840,000K
= 2.86
The inventory turnover ratio for Howmet Aerospace Inc has fluctuated over the past few years. The ratio indicates how efficiently the company manages its inventory by measuring how many times the inventory is sold and replaced during a specific period.
From March 31, 2020, to June 30, 2020, there was an increase in inventory turnover from 4.33 to 5.30, suggesting a quicker conversion of inventory into sales during that period. However, the ratio started declining from September 30, 2020, and continued to decrease steadily until December 31, 2021, reaching a low of 3.48. This downward trend may indicate issues such as overstocking, slow-moving inventory, or challenges in predicting consumer demand accurately.
Subsequently, there was a slight recovery in the inventory turnover ratio from March 31, 2022, to June 30, 2024, fluctuating mostly between 2.41 and 2.86. Although the ratio did not return to the levels seen in mid-2020, this stabilization suggests some improvements in inventory management efficiency. Overall, it would be advisable for Howmet Aerospace to continue monitoring and optimizing its inventory levels to strike a balance between maintaining adequate stock for operations and minimizing carrying costs.
Peer comparison
Dec 31, 2024
Dec 31, 2024