Balchem Corporation (BCPC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 617,478 | 620,383 | 661,907 | 555,849 | 479,747 |
| Inventory | US$ in thousands | 130,802 | 109,521 | 119,668 | 91,058 | 70,620 |
| Inventory turnover | 4.72 | 5.66 | 5.53 | 6.10 | 6.79 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $617,478K ÷ $130,802K
= 4.72
The inventory turnover of Balchem Corporation has shown a steady decline over the past five years, decreasing from 6.79 in December 2020 to 4.72 in December 2024. This trend indicates that Balchem is taking longer to sell its inventory, which could potentially lead to higher carrying costs and obsolete inventory. A decreasing inventory turnover may also suggest inefficiencies in inventory management and sales strategies. Balchem should focus on optimizing its inventory levels, improving demand forecasting, and streamlining its operations to enhance its inventory turnover and overall financial performance.
Peer comparison
Dec 31, 2024