Valmont Industries Inc (VMI)
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 | 3,843,644 | 3,829,564 | 3,742,680 | 3,847,232 | 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 | 1,932,264 | 1,929,505 | 1,948,840 | 1,936,375 |
| Inventory | US$ in thousands | 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 | 418,370 | 377,300 | 406,546 | 395,799 |
| Inventory turnover | 5.84 | 5.52 | 5.13 | 5.30 | 5.47 | 5.19 | 4.67 | 4.30 | 4.50 | 3.58 | 3.75 | 4.03 | 4.40 | 4.39 | 4.26 | 4.57 | 4.62 | 5.11 | 4.79 | 4.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,843,644K ÷ $658,428K
= 5.84
Valmont Industries Inc's inventory turnover ratio has displayed varying trends over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times the company's inventory is sold and replaced over a specific period.
From December 2019 to December 2021, Valmont's inventory turnover ratio ranged from 4.26 to 5.11, indicating a relatively stable performance in managing its inventory during this period. However, in the first quarter of 2022, the ratio decreased to 3.58, suggesting a decrease in inventory turnover efficiency.
Subsequently, from June 2022 to September 2023, the inventory turnover ratio gradually improved, reaching a peak of 5.84 in December 2023. This upward trend indicates that Valmont Industries Inc has been more efficient in managing its inventory and converting it into sales in recent quarters.
Overall, the increasing trend in the inventory turnover ratio signifies that Valmont has been able to sell its inventory more quickly, which may positively impact the company's cash flow and profitability. This improvement in inventory turnover could potentially be attributed to better inventory management practices, demand forecasting, and operational efficiency within the company.
Peer comparison
Dec 31, 2023
Dec 31, 2023