Brinks Company (BCO)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,743,100	3,707,100	3,461,900	3,235,800	2,877,300
Inventory	US$ in thousands	24,300	507,000	—	333,400	279,100
Inventory turnover		154.04	7.31	—	9.71	10.31

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,743,100K ÷ $24,300K
= 154.04

Inventory turnover is a crucial financial ratio that indicates how efficiently a company is managing its inventory. In the case of Brinks Company, we observed a consistent trend in inventory turnover over the past few years.

As of December 31, 2020, the inventory turnover ratio stood at 10.31, suggesting that Brinks Company converted its inventory into sales approximately 10.31 times during the year. This indicates a reasonably efficient management of inventory during that period.

Moving forward to December 31, 2021, the inventory turnover slightly decreased to 9.71. Despite the slight decline, Brinks Company continued to exhibit strong inventory turnover, showcasing its ability to efficiently sell and replenish inventory.

In 2022, specific data for inventory turnover is missing (denoted as "—"), making it challenging to assess the company's performance in managing inventory for that year. This lack of information hinders a comprehensive analysis for that specific period.

By December 31, 2023, the inventory turnover declined further to 7.31. Although the ratio decreased, it still indicates that Brinks Company was effectively managing its inventory turnover, albeit at a slightly slower pace compared to previous years.

Surprisingly, by the end of December 31, 2024, the inventory turnover ratio spiked significantly to 154.04, highlighting an exceptional efficiency in handling inventory during that period. Such a sharp increase could be attributed to various factors, such as a significant increase in sales relative to inventory levels or improvements in inventory management processes.

Overall, Brinks Company's inventory turnover ratios showcase a mix of strong efficiency and fluctuations over the years analyzed. It is essential for the company to maintain a balance in managing inventory to support its operational needs effectively.