Simpson Manufacturing Company Inc (SSD)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,728,689 | 1,715,993 | 1,692,354 | 1,681,241 | 1,664,530 | 1,635,995 | 1,633,141 | 1,640,514 | 1,589,385 | 1,515,027 | 1,380,693 | 1,234,220 | 1,152,385 | 1,089,371 | 1,068,972 | 1,016,317 | 972,371 | 948,833 | 924,794 | 923,236 |
| Inventory | US$ in thousands | 593,175 | 583,380 | 533,625 | 555,745 | 551,575 | 504,446 | 523,561 | 576,433 | 556,801 | 540,020 | 539,844 | 443,448 | 443,756 | 385,512 | 310,254 | 296,640 | 283,742 | 260,054 | 265,365 | 255,720 |
| Inventory turnover | 2.91 | 2.94 | 3.17 | 3.03 | 3.02 | 3.24 | 3.12 | 2.85 | 2.85 | 2.81 | 2.56 | 2.78 | 2.60 | 2.83 | 3.45 | 3.43 | 3.43 | 3.65 | 3.48 | 3.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,728,689K ÷ $593,175K
= 2.91
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Simpson Manufacturing Company Inc, the inventory turnover ratios fluctuated over the given periods.
From March 31, 2020, to September 30, 2021, the inventory turnover ratio ranged between 2.83 and 3.65, indicating relatively stable inventory management. However, in the subsequent periods, the ratio experienced a decline, dropping to 2.60 by December 31, 2021, and bottoming out at 2.56 by June 30, 2022.
Although there was a slight uptick in the inventory turnover ratio in the following periods, reaching 3.24 by September 30, 2023, and 3.17 by June 30, 2024, the ratio dropped again to 2.91 by December 31, 2024. This fluctuation could indicate challenges in managing inventory efficiently or changes in the company's sales and production processes during these periods.
Overall, it is important for Simpson Manufacturing Company Inc to closely monitor its inventory turnover ratio and investigate the factors contributing to the fluctuations to optimize inventory management and improve operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024