Altria Group (MO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,200,000 | 6,331,000 | 6,990,000 | 13,558,000 | 7,415,000 |
| Inventory | US$ in thousands | 1,215,000 | 1,180,000 | 1,194,000 | 1,966,000 | 2,293,000 |
| Inventory turnover | 8.40 | 5.37 | 5.85 | 6.90 | 3.23 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,200,000K ÷ $1,215,000K
= 8.40
The inventory turnover ratio for Altria Group Inc. has exhibited a fluctuating trend over the past five years. In 2019, the inventory turnover stood at 3.09, indicating that the company turned over its inventory approximately 3.09 times during that year. Subsequently, there was a notable improvement in 2020, with the ratio increasing to 3.98. This suggests the company managed its inventory more efficiently that year.
The trend continued upward in 2021, reaching 5.96, showcasing further improvement in inventory management practices. However, in 2022, the ratio slightly decreased to 5.46, suggesting a minor slowdown in inventory turnover efficiency compared to the previous year.
In the most recent year, 2023, the inventory turnover ratio for Altria Group Inc. further decreased to 5.12. Despite the reduction, the company still showed a healthy turnover of inventory.
Overall, the inventory turnover ratios indicate that Altria has been successful in managing its inventory efficiently, with general positive trends over the years. High inventory turnover ratios are usually favorable as they suggest that a company is selling goods quickly, minimizing carrying costs and potential obsolescence.
Peer comparison
Dec 31, 2023