Wabash National Corporation (WNC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,038,310 | 2,179,440 | 1,606,800 | 1,322,140 | 2,012,750 |
| Inventory | US$ in thousands | 267,635 | 243,870 | 237,621 | 163,750 | 186,914 |
| Inventory turnover | 7.62 | 8.94 | 6.76 | 8.07 | 10.77 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,038,310K ÷ $267,635K
= 7.62
Inventory turnover measures how efficiently a company manages its inventory by evaluating the number of times its inventory is sold and replaced during a specific period. In the case of Wabash National Corp., the inventory turnover ratios for the past five years are as follows:
- Dec 31, 2023: 7.62
- Dec 31, 2022: 8.94
- Dec 31, 2021: 6.76
- Dec 31, 2020: 8.07
- Dec 31, 2019: 10.77
The inventory turnover has fluctuated over the years, ranging from a high of 10.77 in 2019 to a low of 6.76 in 2021. A higher inventory turnover indicates that Wabash National Corp is selling and restocking its inventory more frequently, which can be a positive sign of efficient inventory management. Conversely, a lower turnover may suggest excess inventory levels or slower sales.
In 2023, the inventory turnover decreased to 7.62 from 8.94 in 2022, indicating a potential decline in the efficiency of inventory management compared to the previous year. Further analysis would be required to determine the reasons behind this change and whether it is a cause for concern. Overall, monitoring inventory turnover can provide insights into the company's operational efficiency and inventory management practices.