Kratos Defense & Security Solutions (KTOS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 849,100 | 768,500 | 672,300 | 586,400 | 544,500 |
| Inventory | US$ in thousands | 162,100 | 156,200 | 125,500 | 91,700 | 81,200 |
| Inventory turnover | 5.24 | 4.92 | 5.36 | 6.39 | 6.71 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $849,100K ÷ $162,100K
= 5.24
The inventory turnover ratio of Kratos Defense & Security Solutions demonstrates a notable trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio experienced a decline from 6.71 in 2020 to a low of 4.92 in 2023. This downward movement indicates that the company has been turning over its inventory less frequently over this period, suggesting a potential accumulation of inventory or a slowing in sales velocity relative to inventory levels.
In 2020, the inventory turnover was relatively high at 6.71, reflecting efficient inventory management and quick movement of stock through operations. The subsequent years saw a steady decrease: reaching 6.39 in 2021, then declining more substantially to 5.36 in 2022, and further dipping to 4.92 in 2023. The lowest point was observed in 2023, marking a significant reduction from the initial ratio.
However, in 2024, there is a modest recovery, with the inventory turnover rising slightly to 5.24. This suggests a potential stabilization or marginal improvement in inventory management efficiency or sales effectiveness during that year.
Overall, the trend from 2020 through 2024 indicates a gradual decline in inventory turnover, which could result from several factors such as increased inventory holdings relative to sales, changes in product mix, supply chain adjustments, or shifts in customer demand. The partial recovery in 2024 may signal efforts to optimize inventory levels or improved sales performance, but the ratio remains below the levels observed in 2020.
Peer comparison
Dec 31, 2024