Valmont Industries Inc (VMI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,564,660 | 4,038,950 | 3,219,030 | 3,280,660 | 2,696,300 |
| Inventory | US$ in thousands | 590,263 | 658,428 | 728,762 | 728,834 | 448,941 |
| Inventory turnover | 6.04 | 6.13 | 4.42 | 4.50 | 6.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,564,660K ÷ $590,263K
= 6.04
The inventory turnover for Valmont Industries Inc has shown fluctuations over the years, ranging from 4.42 to 6.13. In 2020, the inventory turnover stood at 6.01, indicating that the company was able to efficiently sell and replenish its inventory during that period. However, there was a decline in inventory turnover in the subsequent years, reaching 4.50 in 2021 and 4.42 in 2022, suggesting that the company took longer to sell its inventory relative to the previous year.
The inventory turnover improved in 2023 and 2024, with ratios of 6.13 and 6.04 respectively. This indicates that Valmont Industries Inc was able to sell and replace its inventory at a quicker pace in those years. Overall, the trend in inventory turnover suggests variations in the efficiency of managing inventory levels and sales performance over the years, which can have implications for the company's working capital management and profitability.
Peer comparison
Dec 31, 2024