National Presto Industries Inc (NPK)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 309,662 | 273,460 | 266,498 | 291,381 | 267,705 |
| Inventory | US$ in thousands | 277,999 | 190,420 | 152,137 | 143,861 | 135,488 |
| Inventory turnover | 1.11 | 1.44 | 1.75 | 2.03 | 1.98 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $309,662K ÷ $277,999K
= 1.11
The inventory turnover of National Presto Industries Inc has experienced fluctuations over the past five years. In December 2020, the inventory turnover stood at 1.98, increasing to 2.03 by December 2021. However, there was a decrease in inventory turnover to 1.75 by December 2022, followed by a further decline to 1.44 in December 2023. The most recent data from December 2024 shows a significant drop in inventory turnover to 1.11.
A lower inventory turnover ratio may indicate that the company is struggling to sell its inventory efficiently, leading to excess or obsolete inventory. This could tie up capital and increase storage costs. It may be worth investigating the reasons behind the declining inventory turnover to identify any underlying issues affecting the company's operations and profitability.
Peer comparison
Dec 31, 2024