SPX Corp (SPXC)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,415,900 | 1,030,700 | 970,000 | 922,200 | 969,000 | 961,300 | 920,500 | 871,000 | 836,300 | 1,241,500 | 1,282,100 | 1,343,300 | 1,418,000 | 1,403,900 | 1,406,400 | 1,414,100 | 1,416,100 | 1,416,100 | 1,428,700 | 1,438,500 |
| Inventory | US$ in thousands | 276,700 | 291,500 | 299,600 | 265,700 | 244,000 | 265,200 | 235,800 | 220,700 | 189,800 | 170,300 | 157,700 | 169,700 | 155,000 | 179,300 | 181,600 | 175,100 | 154,900 | 157,700 | 155,500 | 151,500 |
| Inventory turnover | 5.12 | 3.54 | 3.24 | 3.47 | 3.97 | 3.62 | 3.90 | 3.95 | 4.41 | 7.29 | 8.13 | 7.92 | 9.15 | 7.83 | 7.74 | 8.08 | 9.14 | 8.98 | 9.19 | 9.50 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,415,900K ÷ $276,700K
= 5.12
The inventory turnover ratio for SPX Corp fluctuated over the past few years. The ratio indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced during a specific period.
From 2019 to 2023, the inventory turnover ranged from a low of 3.24 to a high of 9.50, with an average of approximately 6.89. The trend demonstrates some variability, with peaks in turnover in mid-2021 and early 2022.
A higher inventory turnover ratio suggests that SPX Corp sells its inventory quickly, which is generally a positive sign. The declining trend from 2021 to 2023 could indicate potential issues such as slowing sales or excessive inventory levels.
It is essential for SPX Corp to monitor its inventory turnover consistently and adjust its inventory management practices to ensure optimal utilization of resources and maintain healthy liquidity. Further investigation into the reasons behind the fluctuations in inventory turnover would provide valuable insights for improving operational efficiency and financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023