Rogers Corporation (ROG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 872,000 | 982,025 | 824,788 | 777,858 | 804,997 |
| Inventory | US$ in thousands | 153,500 | 182,400 | 133,384 | 102,360 | 132,859 |
| Inventory turnover | 5.68 | 5.38 | 6.18 | 7.60 | 6.06 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $872,000K ÷ $153,500K
= 5.68
Inventory turnover measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a period. Looking at Rogers Corp.'s inventory turnover over the past five years, we can see a fluctuating trend.
In 2023, the inventory turnover ratio was 3.92, indicating that the company's inventory was turning over approximately 3.92 times during the year. This was an improvement from the previous year's ratio of 3.56. However, it is lower than the ratios in 2021, 2020, and 2019, which were 4.38, 4.99, and 4.40 respectively.
A higher inventory turnover ratio generally indicates better inventory management and faster sales of inventory. Rogers Corp. may need to investigate the reasons behind the decrease in inventory turnover in 2022 and assess if there are any inefficiencies in managing their inventory levels. Monitoring and improving inventory turnover can help the company optimize its working capital, reduce carrying costs, and improve overall operational efficiency.
Peer comparison
Dec 31, 2023