Kirby Corporation (KEX)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	343,313	339,441	335,697	323,376	310,292	297,956	629,353	621,518	615,382	607,242	262,560	265,713	829,438	796,868	799,428	802,685	242,127	289,307	294,683	318,121
Inventory	US$ in thousands	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	351,401	410,261	428,264	491,566
Inventory turnover		0.76	0.67	0.67	0.68	0.67	0.76	1.70	1.72	1.86	1.97	0.81	0.81	2.68	2.48	2.38	2.35	0.69	0.71	0.69	0.65

December 31, 2023 calculation

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

Based on the data provided, Kirby Corp. has consistently reported an inventory turnover of 0.00 for the past eight quarters. This indicates that Kirby Corp. is not efficiently managing its inventory levels relative to its sales volume. A low inventory turnover ratio generally suggests potential issues such as overstocking, obsolete inventory, or weak sales.

A zero inventory turnover ratio could signal that Kirby Corp. is experiencing challenges in converting its inventory into sales, which may lead to increased carrying costs and a risk of inventory obsolescence. Additionally, it may indicate potential liquidity constraints if excess inventory cannot be quickly converted into cash.

Investors and stakeholders may be concerned about Kirby Corp.'s ability to efficiently manage its inventory, as a low inventory turnover ratio can impact profitability and cash flow. Management should assess and address the underlying reasons for the consistently low inventory turnover to improve operational efficiency and financial performance.