Enpro Industries (NPO)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,081,200 | 1,181,900 | 1,202,100 | 1,191,000 | 1,255,200 | 1,175,000 | 1,185,400 | 1,158,700 | 1,100,600 | 1,130,000 | 1,142,300 | 1,120,800 | 1,128,900 | 808,500 | 806,800 | 831,200 | 822,400 | 1,106,300 | 1,109,700 | 1,117,900 |
| Inventory | US$ in thousands | 142,600 | 145,900 | 152,700 | 157,100 | 151,900 | 150,200 | 168,000 | 164,000 | 135,900 | 147,800 | 149,100 | 138,600 | 139,100 | 124,800 | 153,000 | 153,400 | 157,100 | 225,500 | 252,300 | 249,300 |
| Inventory turnover | 7.58 | 8.10 | 7.87 | 7.58 | 8.26 | 7.82 | 7.06 | 7.07 | 8.10 | 7.65 | 7.66 | 8.09 | 8.12 | 6.48 | 5.27 | 5.42 | 5.23 | 4.91 | 4.40 | 4.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,081,200K ÷ $142,600K
= 7.58
The inventory turnover for Enpro Inc has been relatively stable over the past eight quarters, ranging from 3.85 to 5.10. This ratio indicates efficiency in managing inventory levels and converting stock into sales. A higher turnover implies a faster conversion of inventory into sales, which is generally favorable as it signifies effective inventory management and liquidity.
The decrease in inventory turnover from Q3 2022 to Q2 2023 may suggest a build-up of inventory or a slowdown in sales during that period. Conversely, the increase in turnover from Q2 2023 to Q3 2023 indicates a more efficient management of inventory or an increase in sales relative to the level of inventory held.
Enpro Inc should monitor inventory turnover closely to ensure optimal inventory levels that support sales demand while avoiding excess stock that could tie up resources. Comparing this ratio with industry benchmarks or historical trends can provide further insights into the company's inventory management practices.