CDW Corp (CDW)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 19,927,100 22,246,500 19,550,800 17,500,300 16,924,600
Inventory US$ in thousands 668,100 800,200 927,600 760,000 611,200
Inventory turnover 29.83 27.80 21.08 23.03 27.69

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $19,927,100K ÷ $668,100K
= 29.83

CDW Corp's inventory turnover has demonstrated fluctuating trends over the past five years. The inventory turnover ratio has increased from 20.08 in 2020 to 25.03 in 2023, indicating that the company is generating more sales relative to its average inventory level. This suggests improved efficiency in managing inventory levels and converting inventory into sales.

However, it is noteworthy that the inventory turnover ratio was highest in 2023 compared to the previous four years. The company's ability to effectively manage inventory and meet customer demand has notably strengthened. Conversely, in 2021, the inventory turnover ratio was relatively lower at 18.60, which may indicate potential challenges in inventory management or slower sales turnover during that period.

Overall, the increasing trend in the inventory turnover ratio for CDW Corp suggests enhanced operational efficiency and effectiveness in inventory management, which is essential for optimizing working capital and profitability.


Peer comparison

Dec 31, 2023