Hexcel Corporation (HXL)

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	1,530,000	1,508,000	1,457,000	1,414,600	1,383,000	1,326,400	1,314,700	1,272,500	1,231,900	1,252,400	1,275,000	1,340,900	1,478,800	1,587,800	1,713,000	1,831,700	1,877,200	1,874,900	1,856,600	1,814,900
Inventory	US$ in thousands	334,400	350,800	360,900	354,600	319,300	303,100	271,500	265,900	245,700	244,500	232,400	217,400	213,500	262,900	316,600	354,400	333,100	352,200	339,300	334,500
Inventory turnover		4.58	4.30	4.04	3.99	4.33	4.38	4.84	4.79	5.01	5.12	5.49	6.17	6.93	6.04	5.41	5.17	5.64	5.32	5.47	5.43

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,530,000K ÷ $334,400K
= 4.58

The inventory turnover ratio for Hexcel Corp. has shown some fluctuations over the past eight quarters. The ratio measures how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

In Q4 2023, the inventory turnover ratio improved to 4.05, indicating that the company sold and replaced its inventory approximately 4.05 times during the quarter. This represents an increase from the previous quarter's ratio of 3.80 in Q3 2023. The upward trend suggests that Hexcel Corp. was more efficient in managing its inventory turnover in Q4 2023.

Looking back at Q2 and Q1 2023, the inventory turnover ratios were 3.57 and 3.52 respectively, indicating a slight decrease in efficiency compared to the most recent quarter.

Comparing the current ratio to the same quarter in the previous year, Q4 2022 had a slightly higher inventory turnover ratio of 3.82, while Q3 2022, Q2 2022, and Q1 2022 had ratios of 3.90, 4.30, and 4.22 respectively.

Overall, the inventory turnover ratio for Hexcel Corp. has shown some variability, with fluctuations from quarter to quarter. It is essential for the company to closely monitor and manage its inventory levels to ensure optimal efficiency and profitability.