LCI Industries (LCII)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,008,620	3,933,850	3,429,660	2,090,080	1,832,280
Inventory	US$ in thousands	768,407	1,029,700	1,095,910	493,899	393,607
Inventory turnover		3.92	3.82	3.13	4.23	4.66

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,008,620K ÷ $768,407K
= 3.92

The inventory turnover ratio for LCI Industries has shown some fluctuation over the past five years, ranging from a low of 3.13 in 2021 to a high of 4.66 in 2019. The ratio indicates the number of times LCI Industries has sold and replaced its inventory during each year.

In 2023, the inventory turnover ratio increased to 3.92, a slight improvement from the previous year. This could suggest that LCI Industries managed its inventory more efficiently, either by reducing excess stock levels or by boosting sales volume.

Comparing 2023 to 2021, where the ratio was at its lowest point of 3.13, it is evident that LCI Industries made significant improvements in managing its inventory turnover. Efforts to optimize inventory levels and streamline operations may have contributed to this improvement.

Despite these fluctuations, it is important to note that the inventory turnover ratios for LCI Industries have generally been within a reasonable range over the past five years, indicating that the company has been effectively managing its inventory levels relative to its sales volume. This consistent performance reflects positively on the company's operational efficiency and ability to control its inventory turnover effectively.