MSA Safety (MSA)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	947,695	937,403	940,147	934,216	933,309	924,336	908,668	883,078	854,122	840,264	822,164	802,625	788,405	785,237	763,198	747,665	757,763	737,197	757,350	773,100
Inventory	US$ in thousands	296,796	351,805	320,899	305,556	292,604	324,077	337,954	349,436	338,316	349,664	341,544	321,602	280,617	249,449	232,658	220,021	197,819	252,856	225,410	195,647
Inventory turnover		3.19	2.66	2.93	3.06	3.19	2.85	2.69	2.53	2.52	2.40	2.41	2.50	2.81	3.15	3.28	3.40	3.83	2.92	3.36	3.95

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $947,695K ÷ $296,796K
= 3.19

The inventory turnover ratio of MSA Safety has fluctuated over the past few years. The ratio indicates how efficiently the company is managing its inventory by measuring how many times the inventory is sold and replaced within a specific period.

From March 31, 2020, to June 30, 2021, the inventory turnover ranged from 3.95 to 3.28, showing a relatively stable performance in managing inventory levels. However, from September 30, 2021, to December 31, 2022, the inventory turnover declined gradually from 3.15 to 2.52, suggesting a potential issue with inventory management efficiency during this period.

Subsequently, from March 31, 2023, to December 31, 2024, the inventory turnover ratio fluctuated within the range of 2.50 to 3.19. This variability could indicate changes in sales patterns, market demand, or inventory management strategies within the company.

Overall, the inventory turnover ratio of MSA Safety has shown fluctuations, highlighting the importance of closely monitoring inventory management practices to ensure optimal performance and operational efficiency.