Chemours Co (CC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,211,000 | 6,189,000 | 6,081,000 | 4,603,000 | 5,462,000 |
| Inventory | US$ in thousands | 1,352,000 | 1,404,000 | 1,099,000 | 939,000 | 1,079,000 |
| Inventory turnover | 4.59 | 4.41 | 5.53 | 4.90 | 5.06 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,211,000K ÷ $1,352,000K
= 4.59
The inventory turnover ratio for Chemours Co has shown fluctuations over the past five years. In 2019, the company had an inventory turnover of 5.06, which decreased to 4.90 in 2020 before increasing to 5.53 in 2021. There was a slight decline to 4.41 in 2022, followed by a rebound to 4.59 in 2023.
A higher inventory turnover ratio generally indicates that a company is more efficient in managing its inventory levels and converting them into sales. In contrast, a lower ratio may suggest slower inventory turnover, potentially leading to higher storage and holding costs.
In the case of Chemours Co, despite the fluctuations in the inventory turnover ratio, the values above 4 indicate that the company is effectively managing its inventory and converting it into sales within a reasonable timeframe. However, it is important for the company to continually monitor its inventory turnover to ensure optimal operational efficiency and working capital management.
Peer comparison
Dec 31, 2023