Kirby Corporation (KEX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	343,313	310,292	615,382	828,781	363,478
Inventory	US$ in thousands	454,389	461,848	331,350	309,675	351,401
Inventory turnover		0.76	0.67	1.86	2.68	1.03

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $343,313K ÷ $454,389K
= 0.76

The inventory turnover ratio for Kirby Corp. has been consistently calculated as 0.00 for the past five years, indicating a significant issue with managing and selling inventory efficiently. A low or zero inventory turnover ratio suggests that the company is struggling to sell its inventory and convert it into sales, which can lead to obsolete or excess inventory. This can tie up company capital, increase holding costs, and indicate potential inefficiencies in production, sales, or supply chain management. Kirby Corp. may need to review its inventory management practices, demand forecasting, and sales strategies to improve this crucial ratio and optimize its working capital utilization.