MasterBrand Inc. (MBC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,823,400 | 1,813,000 | 1,772,700 | 1,786,100 |
| Inventory | US$ in thousands | 276,400 | 299,400 | 270,000 | 247,900 |
| Inventory turnover | 6.60 | 6.06 | 6.57 | 7.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,823,400K ÷ $276,400K
= 6.60
Inventory turnover is a crucial metric that indicates how efficiently a company manages its inventory. For MasterBrand Inc., the inventory turnover ratio for the fiscal year 2024 shows a consistent trend. The ratio was 7.20 as of March 31, 2024, indicating that the company sold and replaced its inventory approximately 7.20 times during that period.
Subsequently, the ratio decreased slightly to 6.57 as of June 30, 2024, suggesting a slight decrease in the rate at which the company turned over its inventory. The trend continued as the ratio further declined to 6.06 as of September 30, 2024, indicating a potential slowdown in inventory management efficiency.
However, there was a slight improvement in the inventory turnover ratio by December 31, 2024, where it increased to 6.60. This improvement may indicate a more efficient management of inventory at the end of the fiscal year, potentially resulting from adjustments in inventory levels or sales strategies.
Overall, MasterBrand Inc. should carefully monitor its inventory turnover ratio to ensure optimal inventory management practices and strive for a balance between having enough inventory to meet demand while avoiding excess carrying costs.
Peer comparison
Dec 31, 2024
Dec 31, 2024