Owens Corning Inc (OC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,851,000 | 7,217,000 | 7,389,000 | 6,459,000 | 6,528,000 |
| Inventory | US$ in thousands | 1,587,000 | 1,198,000 | 1,334,000 | 1,078,000 | 855,000 |
| Inventory turnover | 5.58 | 6.02 | 5.54 | 5.99 | 7.64 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,851,000K ÷ $1,587,000K
= 5.58
Owens Corning Inc's inventory turnover has shown a slight decrease over the past five years, declining from 7.64 in December 2020 to 5.58 in December 2024. This indicates that the company is taking longer to sell its inventory, which may point to potential inefficiencies in managing its inventory levels or challenges in selling its products. A lower inventory turnover may also suggest a build-up of excess or obsolete inventory, which could potentially result in increased holding costs and reduced liquidity. Owens Corning Inc should closely monitor its inventory management practices to optimize its turnover rate and improve its overall operational efficiency.