NewMarket Corporation (NEU)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,900,210 | 1,925,910 | 2,124,300 | 1,808,400 | 1,415,900 |
| Inventory | US$ in thousands | 505,426 | 456,234 | 631,383 | 498,539 | 401,031 |
| Inventory turnover | 3.76 | 4.22 | 3.36 | 3.63 | 3.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,900,210K ÷ $505,426K
= 3.76
NewMarket Corporation's inventory turnover has shown fluctuating trends over the past five years. The company's inventory turnover ratio was 3.53 times in December 31, 2020, and experienced a slight increase to 3.63 times by December 31, 2021. However, the ratio decreased to 3.36 times by December 31, 2022.
There was a significant improvement in inventory turnover in the year ending December 31, 2023, where the ratio surged to 4.22 times. This suggests that the company was managing its inventory more efficiently during that period.
Subsequently, by December 31, 2024, the inventory turnover ratio declined to 3.76 times, indicating a slight decrease in inventory turnover efficiency.
Overall, NewMarket Corporation's inventory turnover has varied over the years, with notable improvements in some periods and slight declines in others. Tracking this ratio is crucial in assessing the company's inventory management effectiveness and operational efficiency.
Peer comparison
Dec 31, 2024