Wabash National Corporation (WNC)

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	1,685,285	1,802,510	1,904,397	1,975,421	2,041,516	2,113,288	2,166,515	2,195,657	2,179,438	2,053,215	1,921,591	1,750,670	1,606,801	1,528,754	1,405,623	1,316,641	1,322,135	1,470,247	1,665,030	1,898,601
Inventory	US$ in thousands	258,825	260,599	272,926	278,551	267,635	344,292	342,470	315,643	243,870	309,701	305,338	286,734	237,621	259,635	252,550	227,172	163,750	201,510	201,068	245,915
Inventory turnover		6.51	6.92	6.98	7.09	7.63	6.14	6.33	6.96	8.94	6.63	6.29	6.11	6.76	5.89	5.57	5.80	8.07	7.30	8.28	7.72

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,685,285K ÷ $258,825K
= 6.51

The inventory turnover ratio of Wabash National Corporation has shown fluctuations over the periods presented in the data provided. The ratio indicates how many times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio is generally preferred as it reflects efficient management of inventory.

From March 31, 2020, to December 31, 2024, Wabash National Corporation's inventory turnover ranged from a low of 5.57 to a high of 8.94. The highest inventory turnover ratio of 8.94 was achieved on December 31, 2022, suggesting that the company effectively turned over its inventory almost nine times during that period. On the other hand, the lowest turnover ratio of 5.57 was recorded on June 30, 2021, indicating a slower rate of inventory turnover during that time.

Overall, it is important for Wabash National Corporation to carefully monitor its inventory turnover ratio to ensure efficient management of its inventory levels. An excessively high turnover ratio may suggest insufficient stock levels, leading to potential stockouts, while a low turnover ratio may indicate excess inventory, tying up capital and potentially leading to obsolescence or storage costs. Periodic analysis and comparison of the inventory turnover ratio can help the company optimize its inventory management strategies for improved operational efficiency and financial performance.