Chemours Co (CC)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 4,631,000 4,721,000 5,178,000 4,964,000 3,902,000
Inventory US$ in thousands 1,472,000 1,352,000 1,404,000 1,099,000 939,000
Inventory turnover 3.15 3.49 3.69 4.52 4.16

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,631,000K ÷ $1,472,000K
= 3.15

Inventory turnover is an essential financial ratio that measures how efficiently a company manages its inventory. In the case of Chemours Co, the inventory turnover ratio has shown some fluctuations over the years.

In 2020, the inventory turnover was 4.16, indicating that Chemours Co turned over its inventory approximately 4.16 times during the fiscal year. This suggests a relatively efficient management of inventory.

By the end of 2021, the inventory turnover ratio improved to 4.52, showing an increase in the efficiency of inventory management compared to the previous year.

However, in 2022, the inventory turnover ratio declined to 3.69, indicating that the company took longer to sell its inventory compared to the previous year. This may raise concerns about overstocking or potential issues in sales.

The trend continued in 2023, with a further decrease in the inventory turnover ratio to 3.49. A decreasing inventory turnover ratio could suggest inefficiencies in inventory management, potentially leading to higher holding costs or obsolete inventory.

By the end of 2024, the inventory turnover ratio dropped to 3.15, indicating a continued decline in inventory turnover efficiency. Management may need to investigate the reasons behind the decreasing ratio and take corrective actions to improve inventory management practices.

Overall, the fluctuating inventory turnover ratios for Chemours Co over the years indicate the need for continuous monitoring and improvement in inventory management strategies to enhance operational efficiency and profitability.