Kirby Corporation (KEX)

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	2,378,131	2,451,418	2,422,660	2,406,712	2,391,578	2,359,955	2,378,780	2,354,991	2,262,384	2,161,527	2,058,697	1,949,331	1,866,679	1,780,323	1,675,885	1,639,315	1,730,739	1,859,181	1,976,607	2,167,154
Inventory	US$ in thousands	393,898	434,151	445,304	446,803	454,389	505,506	504,514	475,218	461,848	392,470	370,385	360,457	331,350	308,820	325,545	326,475	309,675	321,433	335,958	341,498
Inventory turnover		6.04	5.65	5.44	5.39	5.26	4.67	4.71	4.96	4.90	5.51	5.56	5.41	5.63	5.76	5.15	5.02	5.59	5.78	5.88	6.35

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,378,131K ÷ $393,898K
= 6.04

Inventory turnover is a crucial financial ratio that indicates how efficiently a company is managing its inventory. It measures the number of times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio generally implies better inventory management and indicates that the company is selling its products quickly.

Analyzing Kirby Corporation's inventory turnover based on the provided data, we observe fluctuations in the ratio over the quarters. The inventory turnover for Kirby Corporation ranged from a high of 6.35 in March 2020 to a low of 4.67 in September 2023.

Overall, we notice a gradual decrease in Kirby Corporation's inventory turnover from the earlier years to recent quarters. This may indicate a potential issue with the company's ability to efficiently manage its inventory levels or a slowdown in sales compared to the earlier periods.

It is essential for Kirby Corporation to further investigate the factors influencing the decrease in inventory turnover and take appropriate steps to improve efficiency in inventory management to enhance profitability and operations.