SunCoke Energy Inc (SXC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,603,400 | 1,724,600 | 1,604,900 | 1,118,800 | 1,048,200 |
| Inventory | US$ in thousands | 180,800 | 182,600 | 175,200 | 127,000 | 126,600 |
| Inventory turnover | 8.87 | 9.44 | 9.16 | 8.81 | 8.28 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,603,400K ÷ $180,800K
= 8.87
Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory. SunCoke Energy Inc's inventory turnover has shown a consistent improvement over the past five years. It increased from 8.28 in December 2020 to 8.81 in December 2021, demonstrating better inventory management. This positive trend continued in the subsequent years, with the inventory turnover ratios reaching 9.16 in December 2022, 9.44 in December 2023, before slightly decreasing to 8.87 in December 2024.
The rising trend in inventory turnover suggests that SunCoke Energy Inc is selling its inventory at a faster rate, which is a positive sign as it indicates efficient inventory management and potentially lower carrying costs. However, the slight decrease in 2024 may warrant further investigation to determine if there are any operational inefficiencies or changes in business strategy impacting inventory turnover. Overall, the company's inventory turnover ratios reflect a generally healthy picture of inventory management efficiency.
Peer comparison
Dec 31, 2024