Kaiser Aluminum Corporation (KALU)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,691,100 | 2,754,900 | 3,287,100 | 2,439,600 | 993,500 |
| Inventory | US$ in thousands | 503,900 | 477,200 | 525,400 | 404,600 | 152,000 |
| Inventory turnover | 5.34 | 5.77 | 6.26 | 6.03 | 6.54 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,691,100K ÷ $503,900K
= 5.34
Kaiser Aluminum Corporation's inventory turnover has shown a consistent trend over the years. The inventory turnover ratio, which tells us how many times a company has sold and replaced its inventory during a specific period, decreased slightly from 6.54 in December 2020 to 5.34 in December 2024.
While the decrease in the inventory turnover ratio indicates a slight decline in efficiency in managing inventory turnover between these periods, it is essential to consider the industry benchmarks and specific business circumstances that may have influenced these ratios. A lower inventory turnover ratio could imply that the company is holding onto inventory for a longer period, which may tie up capital and increase holding costs.
Further analysis of Kaiser Aluminum Corporation's operational efficiency, supply chain management, demand forecasting, and inventory control practices can provide insights into the factors driving the changes in the inventory turnover ratio. Additionally, comparing the company's inventory turnover ratio with industry peers can offer a more comprehensive understanding of its performance in managing its inventory effectively.
Peer comparison
Dec 31, 2024