Hexcel Corporation (HXL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,624,100 | 1,530,100 | 1,383,000 | 1,235,400 | 1,443,600 |
| Inventory | US$ in thousands | 356,200 | 334,400 | 319,300 | 245,700 | 213,500 |
| Inventory turnover | 4.56 | 4.58 | 4.33 | 5.03 | 6.76 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,624,100K ÷ $356,200K
= 4.56
The inventory turnover for Hexcel Corporation has shown a gradual decline over the years, decreasing from 6.76 in 2020 to 5.03 in 2021, and further to 4.33 in 2022. Although there was a slight increase to 4.58 in 2023, the ratio dropped again to 4.56 in 2024. A decreasing inventory turnover may indicate inefficiencies in managing inventory levels or potential issues in sales and production processes. It suggests that Hexcel Corporation is taking longer to sell its inventory, which could tie up capital and potentially lead to higher holding costs. This trend highlights the importance for the company to assess and optimize its inventory management strategies to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2024