Vulcan Materials Company (VMC)
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 | 5,833,500 | 5,853,400 | 5,854,000 | 5,832,500 | 5,757,400 | 5,630,000 | 5,157,000 | 4,611,500 | 4,178,600 | 3,796,378 | 3,603,370 | 3,566,826 | 3,575,345 | 3,596,038 | 3,684,766 | 3,715,890 | 3,673,207 | 3,592,898 | 3,471,833 | 3,391,620 |
| Inventory | US$ in thousands | 615,600 | 570,600 | 594,600 | 585,600 | 579,300 | 542,000 | 524,200 | 524,500 | 521,300 | 512,200 | 450,600 | 441,400 | 448,600 | 455,461 | 451,480 | 470,747 | 458,308 | 429,660 | 441,423 | 429,397 |
| Inventory turnover | 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 | 8.01 | 8.36 | 7.87 | 7.90 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,833,500K ÷ $615,600K
= 9.48
Vulcan Materials Co's inventory turnover has shown consistency over the past eight quarters, ranging from 8.79 to 10.39. The turnover ratio indicates the number of times the company's inventory is sold and replaced within a specific period. A higher inventory turnover ratio signifies efficient inventory management and rapid sales conversion, while a lower ratio may indicate overstocking or slow sales.
In this case, Vulcan Materials Co's inventory turnover has generally been healthy, staying above 9 in most quarters. This suggests that the company efficiently manages its inventory levels, ensuring that stock is sold and replenished promptly. The slight fluctuations in the ratio are normal and may be influenced by various factors such as seasonality, demand fluctuations, or changes in production and sales strategies.
Overall, a consistent inventory turnover ratio above 9 indicates that Vulcan Materials Co is effectively managing its inventory, which can lead to improved cash flow, lower carrying costs, and better overall financial performance. Monitoring and analyzing this ratio regularly can help stakeholders assess the company's operational efficiency and potential risks related to inventory management.
Peer comparison
Dec 31, 2023
Dec 31, 2023