NewMarket Corporation (NEU)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,081,430	2,273,600	1,959,330	1,564,720	1,715,440
Inventory	US$ in thousands	456,234	631,383	498,539	401,031	365,938
Inventory turnover		4.56	3.60	3.93	3.90	4.69

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,081,430K ÷ $456,234K
= 4.56

The inventory turnover ratio for NewMarket Corp. has shown some fluctuations over the past five years. In 2023, the inventory turnover ratio increased to 4.22 from 3.36 in 2022, indicating that the company sold and replaced its inventory more times during the year. This may suggest improved inventory management efficiency or stronger sales performance.

Comparing the data further, the inventory turnover ratio in 2021 was 3.63, slightly lower than in 2023. In 2020, it was 3.53, with a slight decrease compared to 2021. The highest inventory turnover ratio was observed in 2019 at 4.26, indicating that the company managed to turn over its inventory more frequently that year.

Overall, NewMarket Corp.'s inventory turnover has shown variability over the past five years, with a general trend of improvement in recent years. A higher inventory turnover ratio signifies more efficient management of inventory and sales, which can lead to better cash flow and profitability for the company.