Westinghouse Air Brake Technologies Corp (WAB)
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 | 8,342,000 | 8,151,000 | 7,777,000 | 7,461,000 | 7,238,000 | 6,998,100 | 6,878,400 | 6,911,600 | 6,871,000 | 6,938,300 | 6,914,200 | 6,687,100 | 6,746,100 | 7,002,000 | 7,154,100 | 7,592,800 | 7,402,680 | 6,288,600 | 5,446,803 | 4,436,772 |
| Inventory | US$ in thousands | 2,284,000 | 2,246,000 | 2,317,000 | 2,228,000 | 2,034,000 | 2,023,000 | 1,918,000 | 1,828,000 | 1,689,000 | 1,689,600 | 1,661,200 | 1,671,500 | 1,642,000 | 1,779,700 | 1,799,500 | 1,785,700 | 1,773,100 | 1,957,300 | 1,881,790 | 1,947,220 |
| Inventory turnover | 3.65 | 3.63 | 3.36 | 3.35 | 3.56 | 3.46 | 3.59 | 3.78 | 4.07 | 4.11 | 4.16 | 4.00 | 4.11 | 3.93 | 3.98 | 4.25 | 4.17 | 3.21 | 2.89 | 2.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,342,000K ÷ $2,284,000K
= 3.65
Westinghouse Air Brake Technologies Corp's inventory turnover has remained relatively stable over the past eight quarters, ranging from 2.70 to 3.00. The company's ability to sell through its inventory improved in Q1 2022 with an inventory turnover ratio of 3.00, but it slightly decreased in subsequent quarters before stabilizing around 2.95 in Q3 and Q4 2023.
Overall, the company appears to efficiently manage its inventory levels, as evidenced by the consistent turnover ratios above 2.50. This indicates that Westinghouse Air Brake Technologies Corp is effectively selling and replenishing its inventory within a reasonable timeframe, which is a positive sign of operational efficiency. However, it may be worth investigating further to understand the reasons behind the fluctuations in inventory turnover ratios to ensure optimal inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023