LCI Industries (LCII)
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 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,861,493 | 2,904,254 | 2,957,082 | 2,965,502 | 3,008,618 | 3,079,564 | 3,210,222 | 3,540,763 | 3,933,844 | 4,107,749 | 4,142,452 | 3,851,501 | 3,429,662 | 3,094,016 | 2,786,578 | 2,347,492 | 2,090,076 | 1,945,917 | 1,790,375 | 1,873,767 |
| Inventory | US$ in thousands | 736,604 | 705,439 | 687,870 | 734,360 | 768,407 | 791,884 | 830,020 | 909,385 | 1,029,700 | 1,079,900 | 1,155,170 | 1,136,230 | 1,095,910 | 790,651 | 620,183 | 535,056 | 493,899 | 369,160 | 328,986 | 350,514 |
| Inventory turnover | 3.88 | 4.12 | 4.30 | 4.04 | 3.92 | 3.89 | 3.87 | 3.89 | 3.82 | 3.80 | 3.59 | 3.39 | 3.13 | 3.91 | 4.49 | 4.39 | 4.23 | 5.27 | 5.44 | 5.35 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,861,493K ÷ $736,604K
= 3.88
The inventory turnover ratio of LCI Industries has experienced fluctuations over the past few years.
From March 31, 2020, to June 30, 2020, the inventory turnover ratio slightly increased from 5.35 to 5.44. However, it began to decrease in the following quarters, reaching its lowest point of 3.13 by December 31, 2021. This sharp decline indicates that the company may be carrying excess inventory or facing challenges in managing its inventory efficiently.
Subsequently, there was a gradual improvement in the inventory turnover ratio from March 31, 2022, to June 30, 2024, as it increased from 3.39 to 4.30. This suggests that LCI Industries may have implemented better inventory management practices during this period.
Although there were fluctuations, the general trend in recent periods shows a slight improvement in the inventory turnover ratio, indicating potential enhancements in inventory management efficiency. It is essential for the company to continue monitoring and optimizing its inventory levels to ensure optimal utilization of resources and improve overall financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024