Stepan Company (SCL)
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 | 1,908,062 | 1,904,875 | 1,924,708 | 1,951,431 | 2,048,170 | 2,141,860 | 2,251,579 | 2,358,020 | 2,346,201 | 2,313,559 | 2,223,642 | 2,087,453 | 1,950,156 | 1,809,324 | 1,665,955 | 1,544,179 | 1,486,137 | 1,460,441 | 1,467,198 | 1,485,188 |
| Inventory | US$ in thousands | 288,722 | 296,704 | 266,011 | 257,118 | 265,558 | 284,546 | 339,961 | 368,372 | 402,531 | 397,602 | 340,712 | 308,423 | 305,538 | 290,934 | 266,088 | 235,062 | 218,783 | 202,315 | 208,191 | 198,194 |
| Inventory turnover | 6.61 | 6.42 | 7.24 | 7.59 | 7.71 | 7.53 | 6.62 | 6.40 | 5.83 | 5.82 | 6.53 | 6.77 | 6.38 | 6.22 | 6.26 | 6.57 | 6.79 | 7.22 | 7.05 | 7.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,908,062K ÷ $288,722K
= 6.61
Stepping through the inventory turnover figures of Stepan Company from March 31, 2020, to December 31, 2024, reveals fluctuations in efficiency in managing inventory levels. The inventory turnover ratio declined from 7.49 in March 2020 to 6.61 in December 2024. Despite fluctuations, the company consistently maintained a turnover figure above 5. This decline suggests that the company took longer to sell its inventory over the period. Stepan Company may focus on optimizing inventory management practices to ensure efficient turnover and minimize carrying costs in the future.
Peer comparison
Dec 31, 2024
Dec 31, 2024