Topbuild Corp (BLD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,611,850 | 4,464,950 | 4,336,220 | 3,104,480 | 2,426,300 |
| Inventory | US$ in thousands | 406,662 | 364,731 | 438,644 | 352,801 | 161,369 |
| Inventory turnover | 11.34 | 12.24 | 9.89 | 8.80 | 15.04 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,611,850K ÷ $406,662K
= 11.34
The inventory turnover of Topbuild Corp has fluctuated over the past five years, with a noticeable decline from 15.04 in December 31, 2020, to 8.80 in December 31, 2021. However, the company managed to improve its inventory turnover in the following years, reaching 9.89 in December 31, 2022, 12.24 in December 31, 2023, and 11.34 in December 31, 2024.
A high inventory turnover indicates that Topbuild Corp is efficient in managing its inventory levels and selling its products quickly, which can lead to lower holding costs and potentially higher profits. The improvement in inventory turnover in the later years suggests that the company may have implemented better inventory management practices or experienced increased sales.
Overall, Topbuild Corp's inventory turnover has shown variability but appears to be relatively healthy and improving in recent years, indicating effective inventory management strategies. However, it is important for the company to continue monitoring and optimizing its inventory turnover to ensure optimal operations and financial performance.