Vulcan Materials Company (VMC)
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 | 5,418,200 | 5,463,800 | 5,619,900 | 5,727,300 | 5,833,500 | 5,853,400 | 5,854,000 | 5,832,500 | 5,757,400 | 5,630,000 | 5,157,040 | 4,611,623 | 4,178,800 | 3,796,579 | 3,603,531 | 3,566,904 | 3,575,346 | 3,596,038 | 3,684,766 | 3,715,890 |
| Inventory | US$ in thousands | 681,800 | 647,700 | 650,300 | 647,200 | 615,600 | 570,600 | 594,600 | 585,600 | 579,300 | 542,000 | 524,200 | 524,500 | 521,300 | 512,230 | 450,643 | 441,329 | 448,585 | 455,461 | 451,480 | 470,747 |
| Inventory turnover | 7.95 | 8.44 | 8.64 | 8.85 | 9.48 | 10.26 | 9.85 | 9.96 | 9.94 | 10.39 | 9.84 | 8.79 | 8.02 | 7.41 | 8.00 | 8.08 | 7.97 | 7.90 | 8.16 | 7.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,418,200K ÷ $681,800K
= 7.95
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced within a specific period.
Analyzing the inventory turnover of Vulcan Materials Company from March 2020 to December 2024, we observe fluctuations in the ratio:
- The inventory turnover ranged from a low of 7.41 in September 2021 to a high of 10.39 in September 2022, indicating variations in the company's inventory management efficiency.
- The ratio generally trended upward from 2020 to 2022, reaching peak levels in 2022, suggesting improved efficiency in managing inventory during this period.
- However, from December 2022 to December 2024, the inventory turnover gradually decreased, implying a potential slowdown in inventory management efficiency during this period.
Overall, fluctuations in Vulcan Materials Company's inventory turnover ratio indicate changes in how effectively the company is managing its inventory levels and sales. Further analysis and comparison with industry benchmarks may provide insights into the company's inventory management practices and overall operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024