Balchem Corporation (BCPC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 620,383 | 661,907 | 555,849 | 479,747 | 432,338 |
| Inventory | US$ in thousands | 109,521 | 119,668 | 91,058 | 70,620 | 83,893 |
| Inventory turnover | 5.66 | 5.53 | 6.10 | 6.79 | 5.15 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $620,383K ÷ $109,521K
= 5.66
Balchem Corp. has shown relatively stable inventory turnover over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company's inventory is sold and replaced during a specific period.
The trend of inventory turnover for Balchem Corp. has been fluctuating within a relatively narrow range. The ratio decreased from 6.79 in 2020 to 5.15 in 2019, but then increased to 6.10 in 2021. Subsequently, it remained relatively stable around 5.5 to 5.66 in 2022 and 2023, indicating that the company is effectively managing its inventory levels.
A higher inventory turnover ratio generally indicates more efficient inventory management and quicker sales of inventory. Balchem Corp. has consistently maintained an inventory turnover ratio above 5 in the last five years, suggesting that it is efficiently managing its inventory by quickly selling products and replenishing its stock.
Overall, the inventory turnover ratio for Balchem Corp. reveals that the company has the capability to efficiently manage its inventory, ensuring optimal levels to meet customer demand while minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2023