Kirby Corporation (KEX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,440,680	2,391,580	2,262,380	1,866,680	1,730,740
Inventory	US$ in thousands	393,898	454,389	461,848	331,350	309,675
Inventory turnover		6.20	5.26	4.90	5.63	5.59

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,440,680K ÷ $393,898K
= 6.20

To analyze Kirby Corporation's inventory turnover, we consider the data provided for the years 2020 to 2024.

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory in a given period.

Based on the data provided:
- In 2020, Kirby Corporation had an inventory turnover of 5.59, indicating that the company turned over its inventory approximately 5.59 times during that year.
- In 2021, the inventory turnover slightly increased to 5.63, suggesting a marginal improvement in managing inventory efficiency.
- However, in 2022, the inventory turnover decreased to 4.90, signaling a potential slowdown in inventory management efficiency compared to the previous year.
- The ratio increased in 2023 to 5.26, indicating a recovery in managing inventory turnover.
- Lastly, in 2024, the inventory turnover ratio significantly increased to 6.20, reaching its highest point in the analyzed period, suggesting a notable improvement in inventory management efficiency.

Overall, the fluctuations in the inventory turnover ratio over the years indicate varying levels of efficiency in managing inventory. The company's ability to quickly sell and replenish its inventory improved in some years and declined in others. It is essential for Kirby Corporation to monitor and analyze these trends to optimize its inventory management practices for sustained operational effectiveness.