Kaiser Aluminum Corporation (KALU)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,778,900 | 3,231,700 | 2,373,200 | 964,100 | 1,257,800 |
| Inventory | US$ in thousands | 477,200 | 525,400 | 404,600 | 152,000 | 177,600 |
| Inventory turnover | 5.82 | 6.15 | 5.87 | 6.34 | 7.08 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,778,900K ÷ $477,200K
= 5.82
Over the past five years, Kaiser Aluminum Corp's inventory turnover ratio has shown a slight fluctuation. The ratio measures how efficiently the company manages its inventory by indicating how many times during the year its inventory is sold and replaced.
Kaiser Aluminum Corp's inventory turnover ratio was 5.77 in 2023, down from 6.05 in 2022 and 5.80 in 2021. This indicates that the company took longer to sell and replace its inventory in 2023 compared to the previous years. However, the ratio of 5.77 is still relatively high, suggesting that the company is efficient in managing its inventory levels.
In contrast, the inventory turnover was higher in 2020 and 2019 at 6.19 and 6.84, respectively. This indicates that in those years, Kaiser Aluminum Corp was more effective in turning over its inventory. A higher inventory turnover ratio is generally seen as a positive sign, as it indicates that the company is selling its inventory quickly and efficiently.
Overall, although there has been some variability in the inventory turnover ratio over the past five years, Kaiser Aluminum Corp generally maintains a reasonable level of efficiency in managing its inventory. Further analysis of the company's inventory management practices and industry benchmarks could provide additional insights into its performance in this area.
Peer comparison
Dec 31, 2023