Simpson Manufacturing Company Inc (SSD)
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 | 1,664,530 | 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 | 918,469 | 920,150 | 896,200 | 891,633 |
| Inventory | US$ in thousands | 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 | 251,907 | 242,730 | 266,142 | 272,459 |
| Inventory turnover | 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 | 3.65 | 3.79 | 3.37 | 3.27 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,664,530K ÷ $551,575K
= 3.02
Simpson Manufacturing Co., Inc.'s inventory turnover ratio over the quarters has shown a relatively stable trend with some fluctuations. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the company sells and replaces its inventory within a specific period.
The inventory turnover ratios for Q4 2023 to Q1 2022 are as follows:
- Q4 2023: 2.12
- Q3 2023: 2.31
- Q2 2023: 2.25
- Q1 2023: 2.08
- Q4 2022: 2.11
- Q3 2022: 2.07
- Q2 2022: 1.87
- Q1 2022: 2.01
The ratios for each quarter are relatively close to each other, indicating that the company has been efficiently managing its inventory turnover. Generally, a higher inventory turnover ratio suggests that the company is selling its inventory quickly or efficiently, while a lower ratio may indicate overstocking or poor sales.
Overall, Simpson Manufacturing Co., Inc. has maintained a consistent inventory turnover performance, which aligns with effective inventory management practices. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023