Owens Corning Inc (OC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,006,000 | 5,825,000 | 5,439,000 | 5,328,000 | 5,450,000 | 5,401,000 | 5,485,000 | 5,541,000 | 5,526,000 | 6,632,000 | 6,413,000 | 6,167,000 | 5,911,000 | 5,653,000 | 5,463,000 | 5,124,000 | 4,948,000 | 5,313,000 | 5,308,000 | 5,504,000 |
| Inventory | US$ in thousands | 1,587,000 | 1,596,000 | 1,576,000 | 1,205,000 | 1,198,000 | 1,232,000 | 1,288,000 | 1,340,000 | 1,334,000 | 1,322,000 | 1,254,000 | 1,147,000 | 1,078,000 | 949,000 | 887,000 | 854,000 | 855,000 | 886,000 | 951,000 | 1,062,000 |
| Inventory turnover | 5.04 | 3.65 | 3.45 | 4.42 | 4.55 | 4.38 | 4.26 | 4.14 | 4.14 | 5.02 | 5.11 | 5.38 | 5.48 | 5.96 | 6.16 | 6.00 | 5.79 | 6.00 | 5.58 | 5.18 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,006,000K ÷ $1,587,000K
= 5.04
Owens Corning Inc's inventory turnover ratio has shown some fluctuations over the past few years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced over a specific period.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio experienced a general upward trend, increasing from 5.18 to 6.16. This indicates that Owens Corning was selling its inventory at a faster pace during this period.
However, from September 30, 2022, to June 30, 2024, the inventory turnover ratio began to decline, falling to 3.45. This downward trend suggests that Owens Corning was holding onto its inventory for a longer period or experiencing challenges in selling its products efficiently.
By December 31, 2024, the inventory turnover ratio had recovered slightly to 5.04, but it remained below the peak levels seen in 2022. This indicates that the company may have made some adjustments to improve its inventory management but has not yet fully returned to previous levels of efficiency.
Overall, Owens Corning's inventory turnover ratio has shown variability, and it would be important for analysts to further investigate the factors that may have influenced these fluctuations in order to gain a deeper understanding of the company's operational performance.