Ball Corporation (BALL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,075,000 | 13,557,000 | 11,858,000 | 10,090,000 | 10,295,000 |
| Inventory | US$ in thousands | 1,559,000 | 2,179,000 | 1,795,000 | 1,353,000 | 1,274,000 |
| Inventory turnover | 7.75 | 6.22 | 6.61 | 7.46 | 8.08 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,075,000K ÷ $1,559,000K
= 7.75
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It indicates how many times a company sells and replaces its inventory within a specific period.
Looking at the trend in Ball Corp.'s inventory turnover ratio over the past five years, we can observe fluctuations in the ratio. In 2023, the inventory turnover ratio increased to 7.29 from 5.86 in 2022, indicating that Ball Corp. was able to sell and replace its inventory more times during the year. This increase suggests improved efficiency in managing its inventory levels.
Comparing the 2023 ratio to previous years, it is higher than the ratios in 2021 and 2022, but lower than the ratios in 2019 and 2020. This indicates that while Ball Corp. improved its inventory turnover from the previous year, it was still not as efficient as it was in 2019 and 2020.
Overall, a higher inventory turnover ratio is generally seen as more favorable as it indicates that a company is selling its inventory quickly and efficiently. However, it is also important to consider industry norms and business models when evaluating the significance of inventory turnover ratios.
Peer comparison
Dec 31, 2023