Koppers Holdings Inc (KOP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,979,300 | 1,858,900 | 1,567,000 | 1,527,200 | 1,653,100 |
| Inventory | US$ in thousands | 395,700 | 355,700 | 313,800 | 295,800 | 288,500 |
| Inventory turnover | 5.00 | 5.23 | 4.99 | 5.16 | 5.73 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,979,300K ÷ $395,700K
= 5.00
Inventory turnover measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory during a specific period. In the case of Koppers Holdings Inc, the inventory turnover ratio has been relatively stable over the past five years, ranging from 4.28 to 4.78 times.
A higher inventory turnover ratio is generally preferred as it suggests that the company is able to quickly sell its inventory, minimize holding costs, and generate revenue. Although Koppers has experienced a slight decline in inventory turnover from 4.78 in 2019 to 4.37 in 2023, the company still maintains a healthy level of inventory turnover.
The consistency of Koppers' inventory turnover ratio indicates effective inventory management practices. However, it is worth noting that a lower inventory turnover ratio could also indicate overstocking or potential issues with sales and demand forecasting. Further analysis of industry benchmarks and trends would provide additional context to assess Koppers' inventory management efficiency relative to its peers.
Peer comparison
Dec 31, 2023