SPX Corp (SPXC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,184,500 | 1,071,200 | 937,000 | 787,700 | 1,080,600 |
| Inventory | US$ in thousands | 271,000 | 276,700 | 244,000 | 189,800 | 162,000 |
| Inventory turnover | 4.37 | 3.87 | 3.84 | 4.15 | 6.67 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,184,500K ÷ $271,000K
= 4.37
SPX Corp's inventory turnover has shown a declining trend over the past five years. In 2020, the inventory turnover was 6.67, indicating that the company's inventory was sold and replaced 6.67 times during the year. However, this ratio decreased to 4.15 in 2021, 3.84 in 2022, 3.87 in 2023, and then slightly increased to 4.37 in 2024.
A decreasing inventory turnover ratio may suggest that the company is holding onto its inventory for a longer period, which could tie up working capital and increase carrying costs. It may also indicate potential issues with managing inventory levels efficiently or difficulties in forecasting demand accurately.
Analyzing the inventory turnover ratio in conjunction with industry benchmarks and the company's specific circumstances can provide valuable insights into the efficiency of SPX Corp's inventory management practices and its overall operational performance.
Peer comparison
Dec 31, 2024