SPX Corp (SPXC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,516,600 | 1,324,000 | 1,120,500 | 1,418,000 | 1,416,400 |
| Inventory | US$ in thousands | 276,700 | 244,000 | 189,800 | 155,000 | 154,900 |
| Inventory turnover | 5.48 | 5.43 | 5.90 | 9.15 | 9.14 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,516,600K ÷ $276,700K
= 5.48
The inventory turnover for SPX Corp has shown a decreasing trend over the past five years. The ratio dropped from 9.14 in 2019 and 9.15 in 2020 to 5.90 in 2021, 5.43 in 2022, and 5.48 in 2023. This indicates that the company's ability to sell through its inventory has slowed down over time. A lower inventory turnover ratio may suggest excess inventory levels, inefficient inventory management, or challenges in generating sales.
It is important for SPX Corp to closely monitor and analyze the factors impacting its inventory turnover to optimize its inventory levels, improve working capital management, and enhance overall operational efficiency. Further investigation into the reasons behind the declining trend in inventory turnover could help the company make informed decisions to address any underlying issues and improve its financial performance.
Peer comparison
Dec 31, 2023