SUM (Summit Materials) Inventory Turnover : 2.27 (As of Sep. 2024)

View and export this data going back to 2015. Start your Free Trial

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 Sep. 2024 was $788 Mil. Summit Materials's Average Total Inventories for the quarter that ended in Sep. 2024 was $347 Mil. Summit Materials's Inventory Turnover for the quarter that ended in Sep. 2024 was 2.27.

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 Sep. 2024 was 40.18.

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 Sep. 2024 was 0.30.

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.

* Premium members only.

Summit Materials Inventory Turnover Chart

Summit Materials Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

Get a 7-Day Free Trial

7.86

8.45

9.11

8.97

8.21

Summit Materials Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															2.22	1.95	2.15	2.18	2.27

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 Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	788.31	/ (	(349.099	+	345.215)	/	2 )
=	788.31	/	347.157
=	2.27

Summit Materials (NYSE:SUM) 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 Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	347.157	/	788.31	*	365 / 4
	=	40.18

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 Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	347.157	/	1171.137
	=	0.30

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

Thank you for viewing the detailed overview of Summit Materials's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Summit Materials Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Summit Materials Inc (NYSE:SUM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

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

Website

https://www.summit-materials.com

Summit Materials Inc is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company's three operating and reporting segments are the West, East and Cement segments. It operates in 21 U.S. states and in British Columbia, Canada and has assets in 21 U.S. states and in British Columbia, Canada through its platform.

Executives

Christopher Burke Gaskill	officer: See Remarks	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 08202
Craig Scott Anderson	officer: EVP & Chief Financial Officer	1801 CALIFORNIA STREET, SUITE 3500, DENVER CO 80202
Kekin Ghelani	officer: Chief Strategy&Growth Officer	1550 WYNKOOP, DENVER CO 80202
Anne K. Wade	director	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
John Raymond Murphy	director	233 S PATTERSON AVE, SPRINGFIELD MO 65802
Anne P Noonan	director, officer: President & CEO	25435 HARVARD RD, BEACHWOOD OH 44122
Tamla Oates-forney	director	800 CAPITOL STREET 3000, HOUSTON TX 77002
Deon Macmillan	officer: See Remarks	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 08202
Karli S. Anderson	officer: See Remarks	1660 WYNKOOP STREET, SUITE 1000, DENVER CO 80202
Howard L Lance	director	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Joseph S Cantie	director	C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098
Anne Lee Benedict	officer: See Remarks	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Brian James Harris	officer: EVP & Chief Financial Officer	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Mikel Shane Evans	officer: See Remarks	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Longleaf Partners Funds Trust	10 percent owner	C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119