Knife River Corporation (KNF)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,329,180 | 2,291,420 | 2,187,460 | 1,881,980 | 1,807,420 |
| Inventory | US$ in thousands | 380,336 | 319,623 | 323,277 | 291,445 | — |
| Inventory turnover | 6.12 | 7.17 | 6.77 | 6.46 | — |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,329,180K ÷ $380,336K
= 6.12
Based on the provided data, Knife River Corporation's inventory turnover has shown a generally increasing trend over the years. The inventory turnover ratio is a measure of efficiency in managing inventory levels, and a higher turnover indicates that the company is selling its inventory more frequently.
In December 31, 2020, the inventory turnover ratio was not available ("—"). However, from December 31, 2021 to December 31, 2024, the inventory turnover ratios were 6.46, 6.77, 7.17, and 6.12 respectively.
The increase in inventory turnover from 2021 to 2023 suggests that Knife River Corporation has been managing its inventory more efficiently, selling its goods at a faster pace. This could be a positive sign of effective inventory management, reducing carrying costs and the risk of obsolescence.
However, the slight decrease in inventory turnover from December 31, 2023 to December 31, 2024 may indicate a potential shift in the company's inventory management practices or sales patterns that could be worth investigating further.
Overall, the trend of increasing inventory turnover ratios for Knife River Corporation demonstrates a positive aspect of its operations with regard to inventory management efficiency over the years.
Peer comparison
Dec 31, 2024