Westinghouse Air Brake Technologies Corp (WAB)
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 | 8,698,000 | 8,682,000 | 8,632,000 | 8,521,000 | 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 |
| Inventory | US$ in thousands | 2,314,000 | 2,380,000 | 2,364,000 | 2,356,000 | 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 |
| Inventory turnover | 3.76 | 3.65 | 3.65 | 3.62 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,698,000K ÷ $2,314,000K
= 3.76
Westinghouse Air Brake Technologies Corp's inventory turnover has shown fluctuations over the period of March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how efficiently the company manages its inventory.
The average inventory turnover ratio over this period is approximately 3.86. A higher inventory turnover ratio generally indicates efficient inventory management, as it implies that the company is selling its inventory quickly.
The trend in Westinghouse Air Brake Technologies Corp's inventory turnover ratio shows a slight decline from a peak of 4.25 on March 31, 2020, to a low of 3.35 on March 31, 2023. This decline suggests that the company may be holding onto its inventory for a longer period, which could potentially tie up working capital and lead to higher carrying costs.
However, it is important to note that the inventory turnover ratio has shown some stability in recent periods, ranging between 3.65 and 3.76 from September 30, 2024, to December 31, 2024. This stability indicates that the company may have made adjustments to improve its inventory management practices.
Overall, Westinghouse Air Brake Technologies Corp should continue to monitor its inventory turnover ratio and implement strategies to optimize inventory levels to ensure efficient working capital management and cost control.
Peer comparison
Dec 31, 2024
Dec 31, 2024