CF Industries Holdings Inc (CF)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,086,000 | 5,325,000 | 4,151,000 | 3,323,000 | 3,416,000 |
| Inventory | US$ in thousands | 299,000 | 474,000 | 408,000 | 287,000 | 351,000 |
| Inventory turnover | 13.67 | 11.23 | 10.17 | 11.58 | 9.73 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,086,000K ÷ $299,000K
= 13.67
CF Industries Holdings Inc's inventory turnover has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in managing its inventory levels. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a certain period, which can be indicative of how effectively the company is managing its inventory levels and generating sales.
In 2023, CF Industries achieved an inventory turnover ratio of 13.67, which signifies that the company's inventory was sold and replaced approximately 13.67 times during the year. This represents an improvement from the previous year's ratio of 11.23 in 2022, continuing the positive trend seen over the years.
The increasing trend in inventory turnover ratio suggests that CF Industries has been more effective in managing its inventory levels and converting them into sales, which could lead to enhanced liquidity and profitability. However, it is essential to consider other factors such as industry benchmarks and company-specific circumstances when assessing the efficiency of inventory management.
Peer comparison
Dec 31, 2023