Myers Industries Inc (MYE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	748,457	822,570	719,606	475,013	487,374
Inventory	US$ in thousands	90,844	93,351	93,551	65,919	44,260
Inventory turnover		8.24	8.81	7.69	7.21	11.01

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $748,457K ÷ $90,844K
= 8.24

Based on the data provided, Myers Industries Inc. has exhibited fluctuations in its inventory turnover ratio over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times the inventory is sold and replaced during a specific period.

Myers Industries Inc.'s inventory turnover ratio was 6.10 in 2023, slightly lower compared to 6.60 in 2022 and 7.78 in 2019. This suggests that the company took longer to sell and replace its inventory in 2023 compared to the previous years, indicating a potential decrease in inventory efficiency.

However, it is worth noting that the inventory turnover ratio of 6.10 in 2023 is still higher than the ratios reported in 2021 (5.88) and 2020 (5.13), showing an improvement in inventory management efficiency over the later years. Despite the slight decline from the previous year, the company's inventory turnover remains at a relatively healthy level, indicating effective inventory management practices.

Overall, while there has been some variability in Myers Industries Inc.'s inventory turnover ratio in recent years, the company has generally maintained a reasonable level of efficiency in managing its inventory turnover, which is essential for maintaining liquidity and profitability in the business.