Vulcan Materials Company (VMC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,833,400 | 5,757,500 | 4,178,800 | 3,575,300 | 3,673,200 |
| Inventory | US$ in thousands | 615,600 | 579,300 | 521,300 | 448,600 | 458,308 |
| Inventory turnover | 9.48 | 9.94 | 8.02 | 7.97 | 8.01 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,833,400K ÷ $615,600K
= 9.48
The inventory turnover ratio for Vulcan Materials Co has experienced fluctuations over the past five years. The ratio was 9.48 in 2023, slightly lower than the previous year's ratio of 9.94. This indicates that the company's inventory turnover decreased, meaning that it took longer to sell and replace its inventory in 2023 compared to 2022.
Looking further back, the inventory turnover ratio was 8.02 in 2021, 7.97 in 2020, and 8.01 in 2019. These figures suggest some variability in the company's efficiency in managing its inventory levels over the years. Overall, a higher inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory more quickly.
It is important for Vulcan Materials Co to closely monitor its inventory turnover ratio and work towards improving efficiency in managing its inventory levels. By doing so, the company can optimize its working capital and ensure a healthy balance between inventory levels and sales.
Peer comparison
Dec 31, 2023