Enpro Industries (NPO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 603,900 | 632,500 | 675,900 | 705,200 | 698,200 |
| Inventory | US$ in thousands | 138,800 | 142,600 | 151,900 | 160,000 | 139,100 |
| Inventory turnover | 4.35 | 4.44 | 4.45 | 4.41 | 5.02 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $603,900K ÷ $138,800K
= 4.35
Enpro Industries' inventory turnover ratio has shown a slight decline over the five-year period from 2020 to 2024. The ratio decreased from 5.02 in 2020 to 4.35 in 2024. This indicates that, on average, Enpro Industries turned over its inventory 5.02 times in 2020 compared to 4.35 times in 2024.
A higher inventory turnover ratio is generally preferred as it signifies efficient management of inventory levels. However, a decreasing trend in inventory turnover could suggest potential issues such as overstocking, slow-moving inventory, or inefficiencies in production and sales processes.
It is important for Enpro Industries to closely monitor and analyze the factors affecting its inventory turnover to optimize inventory levels, minimize carrying costs, and improve overall operational efficiency.