Knife River Corporation (KNF)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,329,175 | 2,320,464 | 2,309,165 | 2,310,679 | 2,291,388 | 2,236,178 | 2,206,136 | 2,182,408 | 2,187,455 |
| Inventory | US$ in thousands | 380,336 | 347,300 | 385,378 | 375,783 | 319,600 | 314,711 | 374,400 | 373,215 | 323,277 |
| Inventory turnover | 6.12 | 6.68 | 5.99 | 6.15 | 7.17 | 7.11 | 5.89 | 5.85 | 6.77 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,329,175K ÷ $380,336K
= 6.12
Based on the provided data, the inventory turnover for Knife River Corporation shows a fluctuating trend over the period from December 31, 2022, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a specific period.
The inventory turnover ratio ranged from a low of 5.85 on March 31, 2023, to a high of 7.17 on December 31, 2023, showing some variability in the company's inventory management efficiency. A higher turnover ratio generally indicates that the company is selling its inventory more frequently, which is generally positive as it implies that inventory is not sitting idle and tying up resources.
Overall, the inventory turnover ratios for Knife River Corporation seem to be within a reasonable range, indicating that the company efficiently manages its inventory levels. However, it would be beneficial for the company to further analyze the reasons behind the fluctuations in the turnover ratio to optimize inventory management practices and improve overall efficiency in operations.
Peer comparison
Dec 31, 2024
Dec 31, 2024