Minerals Technologies Inc (MTX)
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 | 1,902,500 | 1,911,500 | 1,844,000 | 1,849,600 | 1,872,000 | 1,830,900 | 1,767,700 | 1,673,600 | 1,614,600 | 1,567,100 | 1,493,600 | 1,423,000 | 1,388,300 | 1,386,300 | 1,437,900 | 1,542,400 | 1,560,100 | 1,558,600 | 1,564,500 | 1,539,100 |
| Inventory | US$ in thousands | 325,400 | 337,500 | 354,700 | 370,100 | 348,800 | 344,600 | 339,900 | 333,800 | 297,700 | 282,100 | 261,900 | 247,300 | 248,200 | 255,200 | 269,800 | 252,000 | 253,300 | 256,900 | 258,400 | 254,400 |
| Inventory turnover | 5.85 | 5.66 | 5.20 | 5.00 | 5.37 | 5.31 | 5.20 | 5.01 | 5.42 | 5.56 | 5.70 | 5.75 | 5.59 | 5.43 | 5.33 | 6.12 | 6.16 | 6.07 | 6.05 | 6.05 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,902,500K ÷ $325,400K
= 5.85
Minerals Technologies, Inc. has shown a generally stable trend in its inventory turnover ratio over the past eight quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced within a given period.
The company's inventory turnover ratios have ranged from 4.40 to 5.11 over the specified period. The highest ratio was recorded in Q4 2023 at 5.11, indicating that the company's inventory turnover was the most efficient during that quarter. On the other hand, the lowest ratio was seen in Q1 2022 at 4.40.
Overall, Minerals Technologies, Inc. seems to have a solid inventory management strategy, as evidenced by the consistent ratios above 4. This suggests that the company is able to sell and replace its inventory multiple times throughout the year, which can help prevent issues such as dead inventory and storage costs. It would be beneficial for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023