MSA Safety (MSA)

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	1,352,115	1,340,105	1,302,614	1,263,421	1,223,165	1,204,395	1,193,946	1,178,778	1,158,356	1,043,981	928,733	822,548	752,731	735,053	757,112	773,010	765,369	756,357	746,838	743,742
Inventory	US$ in thousands	292,604	324,077	337,954	349,436	338,316	349,664	341,544	321,602	280,617	249,449	232,658	220,021	244,966	252,856	225,410	195,647	185,027	192,199	187,779	172,663
Inventory turnover		4.62	4.14	3.85	3.62	3.62	3.44	3.50	3.67	4.13	4.19	3.99	3.74	3.07	2.91	3.36	3.95	4.14	3.94	3.98	4.31

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,352,115K ÷ $292,604K
= 4.62

Inventory turnover is a crucial ratio for understanding how efficiently a company manages its inventory. In the case of MSA Safety Inc, the inventory turnover ratio has shown a consistent improvement over the past two years. The trend indicates that the company is moving its inventory at a faster rate.

In Q4 2023, MSA Safety Inc's inventory turnover ratio stood at 3.20, representing the number of times the company sold and replaced its inventory during the quarter. This figure marks an increase from the previous quarter and demonstrates that MSA Safety Inc is effectively managing its inventory levels.

The upward trend in inventory turnover suggests that MSA Safety Inc has been successful in optimizing its inventory management processes, such as procurement, production, and sales strategies. A higher inventory turnover ratio indicates that the company is more efficient in selling its products, reducing the risk of obsolete inventory and improving cash flow.

Overall, the increasing inventory turnover ratio for MSA Safety Inc reflects positively on the company's operational efficiency and management of its inventory levels. It indicates that the company is effectively balancing its inventory levels to meet customer demand while minimizing carrying costs and ensuring a healthy liquidity position.