Howmet Aerospace Inc (HWM)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,413,000 | 5,297,000 | 5,153,000 | 4,932,000 | 4,705,000 | 4,559,000 | 4,440,000 | 4,295,000 | 4,230,000 | 4,055,000 | 4,038,000 | 4,225,000 | 5,984,000 | 8,564,000 | 10,718,000 | 13,291,000 | 10,839,000 | 7,590,000 | 4,646,000 | 1,208,000 |
| Inventory | US$ in thousands | 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 | 1,607,000 | 2,555,000 | 2,606,000 | 2,612,000 |
| Inventory turnover | 3.07 | 3.03 | 3.00 | 2.97 | 2.92 | 2.83 | 2.84 | 2.90 | 3.02 | 2.86 | 2.77 | 2.91 | 4.02 | 5.38 | 6.41 | 5.29 | 6.74 | 2.97 | 1.78 | 0.46 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,413,000K ÷ $1,765,000K
= 3.07
Inventory turnover for Howmet Aerospace Inc has been relatively stable over the past eight quarters, ranging from 2.43 to 2.70. The company's inventory turnover ratio indicates that it is able to efficiently manage its inventory levels. Higher inventory turnover ratios suggest that the company is selling its products quickly and efficiently, reducing the risk of excess inventory buildup.
A consistent or increasing inventory turnover ratio over time can indicate effective inventory management practices, such as accurate demand forecasting, efficient production processes, and timely inventory replenishment. It also suggests that the company has good sales strategies and is able to convert its inventory into sales in a timely manner.
Overall, Howmet Aerospace Inc's inventory turnover ratios show a positive trend, reflecting the company's ability to efficiently manage its inventory levels and generate sales from its inventory assets.
Peer comparison
Dec 31, 2023
Dec 31, 2023