Gibraltar Industries Inc (ROCK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,015,770 | 1,071,270 | 1,049,770 | 776,235 | 678,336 |
| Inventory | US$ in thousands | 120,503 | 170,360 | 176,207 | 98,307 | 61,957 |
| Inventory turnover | 8.43 | 6.29 | 5.96 | 7.90 | 10.95 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,015,770K ÷ $120,503K
= 8.43
The inventory turnover ratio for Gibraltar Industries Inc. has fluctuated over the past five years, ranging from 5.96 to 10.23 times. The inventory turnover ratio measures how many times a company sells and replaces its inventory over a period.
In 2023, the inventory turnover ratio improved significantly to 8.43 times compared to 6.29 in 2022, indicating that the company managed its inventory more efficiently by selling and replacing it more frequently.
Despite the improvement in 2023, the inventory turnover ratio remains lower than the peak of 10.23 in 2019. This suggests that the company may have excess or slow-moving inventory on hand, which could tie up capital and impact profitability.
Overall, the analysis of the inventory turnover ratio indicates that Gibraltar Industries Inc. has shown varying levels of efficiency in managing its inventory over the years, and further evaluation of inventory management practices may be beneficial for optimizing the use of resources.
Peer comparison
Dec 31, 2023