Ball Corporation (BALL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,354,000 | 11,359,000 | 12,766,000 | 11,085,000 | 9,323,000 |
| Inventory | US$ in thousands | 1,477,000 | 1,559,000 | 2,179,000 | 1,795,000 | 1,353,000 |
| Inventory turnover | 6.33 | 7.29 | 5.86 | 6.18 | 6.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,354,000K ÷ $1,477,000K
= 6.33
Inventory turnover is a crucial financial ratio that measures the efficiency of a company in managing its inventory. It indicates how many times during a period a company sells and replaces its inventory. The inventory turnover for Ball Corporation over the past five years has shown fluctuations. In December 2020, the inventory turnover was 6.89, which decreased to 6.18 at the end of 2021. However, in 2022, the turnover ratio decreased further to 5.86 before rebounding in 2023 to 7.29. By the end of 2024, the turnover ratio decreased slightly to 6.33.
A high inventory turnover ratio signifies that the company is selling its inventory quickly, which can indicate strong sales and efficient inventory management. On the other hand, a low inventory turnover ratio may suggest excess inventory or slow-moving products, which could tie up capital and lead to potential obsolescence or holding costs. In Ball Corporation's case, the fluctuations in inventory turnover over the years may indicate variations in sales patterns, changes in demand, or adjustments in inventory management strategies. It is important for the company to closely monitor and analyze these trends to optimize inventory levels and enhance operational efficiency.
Peer comparison
Dec 31, 2024