PACCAR Inc (PCAR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 27,824,000 | 980,000 | 838,000 | 946,500 | 1,110,400 |
| Inventory | US$ in thousands | 2,367,100 | 2,576,700 | 2,198,800 | 1,976,000 | 1,221,900 |
| Inventory turnover | 11.75 | 0.38 | 0.38 | 0.48 | 0.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $27,824,000K ÷ $2,367,100K
= 11.75
PACCAR Inc's inventory turnover has exhibited fluctuations over the years based on the provided data. The ratio decreased from 0.91 in December 31, 2020, to 0.48 in December 31, 2021, indicating a decline in inventory turnover efficiency. Subsequently, the inventory turnover remained relatively stable at 0.38 for December 31, 2022 and December 31, 2023. However, there was a significant improvement in inventory turnover to a much higher level of 11.75 in December 31, 2024.
The sudden spike in inventory turnover for December 31, 2024, suggests a notable enhancement in PACCAR Inc's ability to sell its inventory quickly during that period. This sharp increase may indicate efficient inventory management or possibly a change in the company's sales strategy, leading to a rapid turnover of inventory.
Overall, while the company experienced fluctuations in its inventory turnover ratio in the years provided, the substantial increase in inventory turnover in December 31, 2024, could be a positive indicator of effective inventory management and potential growth in sales for PACCAR Inc.
Peer comparison
Dec 31, 2024