Valmont Industries Inc (VMI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,038,950 | 3,219,030 | 3,280,660 | 2,696,300 | 2,563,290 |
| Inventory | US$ in thousands | 658,428 | 728,762 | 728,834 | 448,941 | 418,370 |
| Inventory turnover | 6.13 | 4.42 | 4.50 | 6.01 | 6.13 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,038,950K ÷ $658,428K
= 6.13
The inventory turnover ratio for Valmont Industries Inc has shown fluctuations over the past five years. The ratio was 6.13 in 2023, indicating that the company sold and replaced its inventory approximately 6.13 times during the year. This represents an improvement compared to the previous year where the ratio was 4.42. In 2021 and 2020, the inventory turnover ratios were 4.50 and 6.01, respectively, showing variability in how efficiently the company managed its inventory during those years. The consistent ratio of 6.13 in 2019 and 2023 could suggest that Valmont Industries Inc has been able to maintain a relatively stable rate of inventory turnover over the years. Overall, a higher inventory turnover ratio implies better efficiency in managing inventory levels and converting inventory into sales.
Peer comparison
Dec 31, 2023