Altria Group (MO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,077,000 | 10,199,000 | 6,442,000 | 7,119,000 | 7,818,000 |
| Inventory | US$ in thousands | 1,080,000 | 1,215,000 | 1,180,000 | 1,194,000 | 1,966,000 |
| Inventory turnover | 5.63 | 8.39 | 5.46 | 5.96 | 3.98 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,077,000K ÷ $1,080,000K
= 5.63
The inventory turnover for Altria Group has shown fluctuations over the years as per the provided data. In 2020, the inventory turnover was 3.98, indicating that the company's inventory was sold and replaced approximately 3.98 times during the year.
Subsequently, in 2021, the turnover ratio increased to 5.96, suggesting a more efficient management of inventory as compared to the previous year. However, in 2022, there was a slight decrease in inventory turnover to 5.46, but it remained relatively high compared to the base year.
By the end of 2023, the inventory turnover surged to 8.39, showcasing a significant improvement in inventory management efficiency. This sharp increase suggests that Altria Group was able to sell and replace its inventory over 8 times during the year, indicating a rapid turnover of goods.
In the latest year, 2024, the turnover ratio was 5.63, reflecting a slight decrease from the previous year, yet still maintaining a relatively high level of efficiency in inventory management.
Overall, the trend in Altria Group's inventory turnover ratios indicates a mix of fluctuations and improvements in managing its inventory effectively over the years. It is crucial for the company to monitor and analyze these trends to ensure optimal inventory management practices moving forward.
Peer comparison
Dec 31, 2024