Enpro Industries (NPO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,048,300 | 1,104,300 | 1,100,600 | 1,130,400 | 1,199,700 |
| Inventory | US$ in thousands | 142,600 | 151,900 | 135,900 | 139,100 | 157,100 |
| Inventory turnover | 7.35 | 7.27 | 8.10 | 8.13 | 7.64 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,048,300K ÷ $142,600K
= 7.35
The inventory turnover ratio for Enpro Inc has remained relatively stable over the past five years, ranging from 4.41 to 5.10. This ratio indicates how efficiently the company is managing its inventory by measuring the number of times it sells and replaces its inventory during a given period. A higher inventory turnover ratio generally implies more efficient inventory management, as the company is selling its inventory quickly.
In Enpro Inc's case, the inventory turnover has fluctuated slightly over the years but has generally been within a narrow range. The slight fluctuations may be due to various factors such as changes in demand, production efficiency, or inventory management practices.
Overall, with an average inventory turnover rate of approximately 4.89 over the five-year period, Enpro Inc appears to be effectively managing its inventory levels to support sales operations. While the company's inventory turnover ratio could be considered moderate compared to industry benchmarks, it suggests that Enpro Inc has been maintaining a healthy balance between stocking enough inventory to meet demand and avoiding excess inventory buildup.