Summit Materials (LTS:0LAI) Inventory Turnover : 2.15 (As of Mar. 2024)

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What is Summit Materials Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Summit Materials's Cost of Goods Sold for the three months ended in Mar. 2024 was $624 Mil. Summit Materials's Average Total Inventories for the quarter that ended in Mar. 2024 was $290 Mil. Summit Materials's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Summit Materials's Days Inventory for the three months ended in Mar. 2024 was 42.40.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Summit Materials's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.36.

Summit Materials Inventory Turnover Historical Data

The historical data trend for Summit Materials's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Summit Materials Inventory Turnover Chart

Summit Materials Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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7.86

8.45

9.11

8.97

8.21

Summit Materials Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															1.58	2.05	2.22	1.95	2.15

Summit Materials Inventory Turnover Calculation

Summit Materials's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1862.408	/ (	(212.491	+	241.35)	/	2 )
=	1862.408	/	226.9205
=	8.21

Summit Materials's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	624.011	/ (	(241.35	+	338.501)	/	2 )
=	624.011	/	289.9255
=	2.15

Summit Materials (LTS:0LAI) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Summit Materials's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	289.9255	/	624.011	*	365 / 4
	=	42.40

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Summit Materials's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	289.9255	/	805.015
	=	0.36

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Summit Materials Inventory Turnover Related Terms

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Summit Materials (LTS:0LAI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Summit Materials Inc (LTS:0LAI) » Definitions » Inventory Turnover

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Traded in Other Exchanges

SUM:USA 7SU:Germany

Address

1801 California Street, Suite 3500, Denver, CO, USA, 80202

Website

https://www.summit-materials.com

Summit Materials Inc is an aggregates supplier and cement producer in the United States. The company sells products that include aggregates, which it supplies across the United States, and in British Columbia, Canada, and cement, which it supplies to surrounding states along the Mississippi River from Minnesota to Louisiana. In addition to supplying aggregates to customers, the company uses a portion of its materials internally to produce ready-mix concrete and asphalt paving mix, which may be sold externally or used in its paving and related services businesses. The company operates in 22 U.S. states and in British Columbia, Canada and has assets in 21 U.S. states and in British Columbia, Canada through their platforms.

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