Westinghouse Air Brake Technologies Corp (WAB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,800,000 | 8,452,000 | 7,330,000 | 6,974,000 | 6,840,400 |
| Inventory | US$ in thousands | 2,314,000 | 2,284,000 | 2,034,000 | 1,689,000 | 1,642,000 |
| Inventory turnover | 3.80 | 3.70 | 3.60 | 4.13 | 4.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,800,000K ÷ $2,314,000K
= 3.80
Westinghouse Air Brake Technologies Corp's inventory turnover has shown a slight decline over the past few years, from 4.17 in December 2020 to 3.80 in December 2024. This indicates that the company is taking longer to sell its inventory. A lower inventory turnover ratio may suggest potential issues such as overstocking, obsolete inventory, or difficulties in managing inventory levels efficiently. It is essential for the company to assess and improve its inventory management practices to optimize its working capital and overall operational efficiency. Additional analysis of the underlying reasons for the decreasing trend in inventory turnover would be beneficial in identifying and addressing any potential concerns.
Peer comparison
Dec 31, 2024