Mercer International Inc (MERC)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,186,426 | 2,210,273 | 2,160,117 | 1,979,717 | 1,907,320 | 1,754,018 | 1,685,918 | 1,577,619 | 1,468,920 | 1,450,257 | 1,413,681 | 1,394,565 | 1,359,411 | 1,374,110 | 1,420,460 | 1,141,090 | 861,918 | 509,195 | 181,133 | 167,545 |
| Inventory | US$ in thousands | 414,161 | 422,151 | 429,873 | 531,439 | 450,470 | 385,961 | 348,837 | 353,407 | 356,731 | 345,107 | 313,354 | 288,111 | 271,696 | 269,864 | 261,453 | 269,812 | 272,599 | 269,443 | 286,839 | 282,308 |
| Inventory turnover | 5.28 | 5.24 | 5.03 | 3.73 | 4.23 | 4.54 | 4.83 | 4.46 | 4.12 | 4.20 | 4.51 | 4.84 | 5.00 | 5.09 | 5.43 | 4.23 | 3.16 | 1.89 | 0.63 | 0.59 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,186,426K ÷ $414,161K
= 5.28
To analyze Mercer International Inc.'s inventory turnover, we can observe fluctuations in the ratio over the quarters provided:
Q4 2023: 4.48
Q3 2023: 4.46
Q2 2023: 4.30
Q1 2023: 3.17
Q4 2022: 3.64
Q3 2022: 3.95
Q2 2022: 4.18
Q1 2022: 3.82
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory over a specific period.
For Mercer International Inc., we can observe that the inventory turnover ratio has been fluctuating over the quarters provided, ranging from a low of 3.17 in Q1 2023 to a high of 4.48 in Q4 2023. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
Overall, Mercer International Inc.'s inventory turnover has shown variations but generally appears to be in the range of 3.17 to 4.48, indicating that the company is effectively managing its inventory levels and turning over its inventory at a reasonable rate.