Werner Enterprises Inc (WERN)

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	2,787,563	2,876,293	2,898,341	2,890,676	2,893,810	2,860,170	2,844,707	2,850,974	2,768,391	2,675,193	2,558,595	2,384,064	2,256,438	2,114,982	2,003,219	1,927,797	1,911,283	1,932,660	1,972,166	2,033,840
Inventory	US$ in thousands	14,183	15,442	16,286	17,173	18,077	17,251	16,026	14,926	14,527	12,849	12,568	12,105	11,140	11,787	11,899	11,919	12,062	9,354	8,713	8,151
Inventory turnover		196.54	186.26	177.97	168.33	160.08	165.80	177.51	191.01	190.57	208.20	203.58	196.95	202.55	179.43	168.35	161.74	158.45	206.61	226.35	249.52

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,787,563K ÷ $14,183K
= 196.54

The inventory turnover ratio for Werner Enterprises Inc has fluctuated over the past few years, indicating varying levels of efficiency in managing its inventory. Initially, the inventory turnover was high, reflecting a quick turnover of inventory in the first half of 2020. However, there was a declining trend in the latter half of 2020, reaching a low point at the end of the year. This suggests potential issues with inventory management or slowdowns in sales.

Subsequently, there was a gradual increase in the inventory turnover ratio throughout 2021 and the first half of 2022, indicating improvements in managing inventory levels and/or increased sales activity. The ratio peaked in September 2022 before experiencing a slight decline towards the end of the year.

From 2023 onwards, the inventory turnover ratio remained relatively stable but at a lower level compared to the previous peaks. This could imply a more balanced inventory management approach without the extremes seen in the previous periods.

Overall, the inventory turnover ratio for Werner Enterprises Inc has shown fluctuations over time, highlighting the company's ability to efficiently manage its inventory levels to meet sales demands. Continued monitoring of this ratio is essential to ensure optimal inventory management practices and operational efficiency.