Schneider National Inc (SNDR)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 4,849,400 4,939,500 5,683,900 4,847,200 4,072,200
Inventory US$ in thousands 89,800 117,900 53,000 27,400 44,900
Inventory turnover 54.00 41.90 107.24 176.91 90.69

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,849,400K ÷ $89,800K
= 54.00

Schneider National Inc's inventory turnover has displayed significant fluctuations over the past five years. The ratio stood at 90.69 times in December 31, 2020, indicating that the company converted its inventory into sales nearly 91 times during that year. This suggests efficient management of inventory levels.

The inventory turnover ratio surged to 176.91 times by December 31, 2021, indicating the company was able to sell its inventory at a much faster rate compared to the previous year. This could be a result of effective inventory management practices or increased demand for its products.

In December 31, 2022, the inventory turnover decreased to 107.24 times, suggesting that Schneider National Inc took longer to sell its inventory compared to the year before. This could be due to changes in customer demand, production delays, or inefficiencies in inventory management.

By December 31, 2023, the inventory turnover ratio dropped further to 41.90 times, indicating a significant slowdown in inventory turnover. This could raise concerns about excess inventory levels or declining sales, potentially leading to carrying costs and write-downs.

However, by December 31, 2024, the inventory turnover ratio improved to 54.00 times, showing a partial recovery in the management of inventory levels. Schneider National Inc may have implemented strategies to address excess inventory and improve sales efficiency.

Overall, the fluctuations in Schneider National Inc's inventory turnover ratio over the five-year period suggest the need for continuous monitoring and adjustments in inventory management practices to ensure optimal utilization of assets and enhance operational efficiency.