Abbott Laboratories (ABT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,706,000 | 17,975,000 | 19,142,000 | 18,537,000 | 15,003,000 |
| Inventory | US$ in thousands | 6,194,000 | 6,570,000 | 6,173,000 | 5,157,000 | 5,012,000 |
| Inventory turnover | 3.02 | 2.74 | 3.10 | 3.59 | 2.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,706,000K ÷ $6,194,000K
= 3.02
Abbott Laboratories' inventory turnover ratio has shown some fluctuations over the years based on the provided data. In 2020, the inventory turnover was 2.99, indicating that the company converted its inventory into sales almost 3 times during that period. Subsequently, in 2021, the inventory turnover improved to 3.59, suggesting a more efficient management of inventory during that year.
However, in 2022, the inventory turnover ratio decreased to 3.10, indicating that the company took slightly longer to sell its inventory compared to the previous year. This trend continued in 2023, with a further decrease to 2.74, signifying a potential inefficiency in managing inventory turnover during that period.
In 2024, there was a slight improvement in the inventory turnover ratio to 3.02. While this is higher compared to 2023, it is still lower than the peak achieved in 2021. Overall, Abbott Laboratories has experienced fluctuations in its inventory turnover ratio, suggesting varying levels of efficiency in managing its inventory levels and sales over the years.
Peer comparison
Dec 31, 2024