Simpson Manufacturing Company Inc (SSD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,728,730 | 1,665,630 | 1,590,040 | 1,153,090 | 972,071 |
| Inventory | US$ in thousands | 593,175 | 551,575 | 556,801 | 443,756 | 283,742 |
| Inventory turnover | 2.91 | 3.02 | 2.86 | 2.60 | 3.43 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,728,730K ÷ $593,175K
= 2.91
Simpson Manufacturing Company Inc's inventory turnover has fluctuated over the past five years. As of December 31, 2020, the inventory turnover ratio stood at 3.43 times, indicating that the company's inventory was being sold and replaced approximately 3.43 times during that year. However, this ratio declined to 2.60 times by December 31, 2021, suggesting a decrease in the efficiency of inventory management.
Subsequently, there was a slight improvement as of December 31, 2022, with the inventory turnover ratio increasing to 2.86 times. This improvement was followed by another increase to 3.02 times by December 31, 2023, indicating a better utilization of inventory during that period. However, the ratio declined slightly to 2.91 times by December 31, 2024.
Overall, Simpson Manufacturing Company Inc's inventory turnover has shown some variability, with fluctuations indicating changes in the company's inventory management practices and sales performance over the years. Further analysis would be needed to understand the factors driving these fluctuations and to assess the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2024