Kadant Inc (KAI)
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 | 897,364 | 866,819 | 844,380 | 819,991 | 797,947 | 793,742 | 779,342 | 761,779 | 575,687 | 573,690 | 559,723 | 538,553 | 684,550 | 476,212 | 438,417 | 410,598 | 400,815 | 407,177 | 423,223 | 442,848 |
| Inventory | US$ in thousands | 146,092 | 169,252 | 173,513 | 171,958 | 152,677 | 164,346 | 176,380 | 179,199 | 163,672 | 156,567 | 156,426 | 143,583 | 134,356 | 135,476 | 114,316 | 112,590 | 106,814 | 108,715 | 109,663 | 102,718 |
| Inventory turnover | 6.14 | 5.12 | 4.87 | 4.77 | 5.23 | 4.83 | 4.42 | 4.25 | 3.52 | 3.66 | 3.58 | 3.75 | 5.10 | 3.52 | 3.84 | 3.65 | 3.75 | 3.75 | 3.86 | 4.31 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $897,364K ÷ $146,092K
= 6.14
Kadant Inc's inventory turnover has shown some fluctuations over the past few years. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. A higher turnover ratio indicates that the company is efficiently managing its inventory.
Based on the data provided, Kadant Inc's inventory turnover ranged from 3.52 to 6.14 over the period from March 31, 2020, to December 31, 2024. The company's inventory turnover was relatively stable around 3.5 to 4.5 from 2020 to 2023. However, there was a significant increase in the inventory turnover ratio in the last two quarters of 2024, reaching 6.14 by December 31, 2024.
This increase in inventory turnover can indicate improved inventory management efficiency, quicker sales cycles, or more effective demand forecasting. A higher inventory turnover ratio suggests that Kadant Inc is selling its products faster or has optimized its inventory levels, which can lead to lower carrying costs and higher profitability.
It is important to continue monitoring Kadant Inc's inventory turnover ratio to ensure that the company maintains its efficient inventory management practices and sustains its improved performance in the future.
Peer comparison
Dec 31, 2024
Dec 31, 2024