Balchem Corporation (BCPC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 617,478 | 617,517 | 616,342 | 619,158 | 620,383 | 630,569 | 653,002 | 663,916 | 661,907 | 647,082 | 608,180 | 586,281 | 555,849 | 530,677 | 512,514 | 487,571 | 479,747 | 468,033 | 453,848 | 443,509 |
| Inventory | US$ in thousands | 130,802 | 118,510 | 117,099 | 110,381 | 109,521 | 116,346 | 124,949 | 124,768 | 119,668 | 139,464 | 140,840 | 108,411 | 91,058 | 81,925 | 78,333 | 77,022 | 70,620 | 77,430 | 81,546 | 83,196 |
| Inventory turnover | 4.72 | 5.21 | 5.26 | 5.61 | 5.66 | 5.42 | 5.23 | 5.32 | 5.53 | 4.64 | 4.32 | 5.41 | 6.10 | 6.48 | 6.54 | 6.33 | 6.79 | 6.04 | 5.57 | 5.33 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $617,478K ÷ $130,802K
= 4.72
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It indicates how many times a company's inventory is sold and replaced over a specific period. For Balchem Corporation, the inventory turnover ratio has displayed some fluctuations over the years.
From the data provided, we can see that Balchem's inventory turnover has generally been within the range of 4 to 7 times per year. The trend shows an increase in inventory turnover from the beginning of the dataset in March 2020 to a peak in December 2021. This suggests that Balchem was managing its inventory more efficiently during this period, possibly due to better inventory management practices or increased sales.
However, from June 2022 onwards, the inventory turnover ratio starts to decline, reaching a low point by the end of December 2024. A decreasing inventory turnover ratio may indicate slower sales relative to the level of inventory held, which could lead to excess inventory or obsolete stock.
Overall, while Balchem Corporation has experienced fluctuations in its inventory turnover ratio, it is important for the company to closely monitor its inventory levels and sales performance to ensure optimal inventory management and efficient use of resources.
Peer comparison
Dec 31, 2024
Dec 31, 2024