Valmont Industries Inc (VMI)
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 | 3,564,664 | 3,735,607 | 3,917,735 | 3,939,738 | 4,038,953 | 4,024,873 | 3,937,989 | 4,042,541 | 3,985,163 | 3,869,809 | 3,675,737 | 3,470,583 | 3,280,663 | 2,347,005 | 2,228,200 | 2,066,472 | 1,976,463 | 1,965,362 | 1,916,404 | 1,902,737 |
| Inventory | US$ in thousands | 590,263 | 611,422 | 633,232 | 668,743 | 658,428 | 693,629 | 729,738 | 725,360 | 728,762 | 746,282 | 786,600 | 807,471 | 728,834 | 655,903 | 593,498 | 512,924 | 448,941 | 448,088 | 449,516 | 416,613 |
| Inventory turnover | 6.04 | 6.11 | 6.19 | 5.89 | 6.13 | 5.80 | 5.40 | 5.57 | 5.47 | 5.19 | 4.67 | 4.30 | 4.50 | 3.58 | 3.75 | 4.03 | 4.40 | 4.39 | 4.26 | 4.57 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,564,664K ÷ $590,263K
= 6.04
Valmont Industries Inc's inventory turnover ratio has shown fluctuating trends over the years, reflecting the efficiency of the company in managing its inventory. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a certain period.
Based on the provided data:
- The inventory turnover ratio ranged from a low of 3.58 in September 30, 2021, to a high of 6.19 in June 30, 2024.
- The inventory turnover ratio was generally above 4, indicating that Valmont Industries Inc efficiently managed its inventory turnover, on average, during these periods.
- There was a noticeable improvement in inventory turnover from September 30, 2021 (3.58) to December 31, 2024 (6.04), which suggests a positive trend in inventory management efficiency.
- The highest inventory turnover ratio was recorded on December 31, 2024, at 6.04, suggesting the company was able to turn over its inventory more than six times during that specific period.
Overall, the increasing trend in inventory turnover ratio over time demonstrates that Valmont Industries Inc has been effective in managing its inventory levels and converting them into sales. This efficiency in inventory management is crucial for the company to optimize its working capital and meet customer demand effectively.
Peer comparison
Dec 31, 2024
Dec 31, 2024