CF Industries Holdings Inc (CF)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,086,000 | 4,368,000 | 4,877,000 | 5,304,000 | 5,325,000 | 5,358,000 | 4,875,000 | 4,562,000 | 4,151,000 | 3,688,000 | 3,530,000 | 3,315,000 | 3,323,000 | 3,223,000 | 3,269,000 | 3,402,000 | 3,416,000 | 3,484,000 | 3,541,000 | 3,526,000 |
| Inventory | US$ in thousands | 299,000 | 318,000 | 319,000 | 430,000 | 474,000 | 500,000 | 497,000 | 488,000 | 408,000 | 418,000 | 290,000 | 379,000 | 287,000 | 298,000 | 273,000 | 379,000 | 351,000 | 296,000 | 290,000 | 446,000 |
| Inventory turnover | 13.67 | 13.74 | 15.29 | 12.33 | 11.23 | 10.72 | 9.81 | 9.35 | 10.17 | 8.82 | 12.17 | 8.75 | 11.58 | 10.82 | 11.97 | 8.98 | 9.73 | 11.77 | 12.21 | 7.91 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,086,000K ÷ $299,000K
= 13.67
CF Industries Holdings Inc's inventory turnover has shown a consistent improvement in recent quarters, with the ratio steadily increasing from 9.35 in Q1 2022 to 15.29 in Q2 2023. This indicates that the company is managing its inventory more efficiently and selling its products at a faster pace. A higher inventory turnover ratio is generally seen as a positive indicator of operational efficiency and liquidity.
The company's inventory turnover ratio peaked in Q2 2023 at 15.29, suggesting that CF Industries Holdings Inc is able to sell its inventory 15.29 times during the period. This signifies that the company is effectively managing its inventory levels and converting them into sales quickly. Overall, the upward trend in inventory turnover indicates that CF Industries Holdings Inc is effectively controlling its inventory levels and efficiently generating revenue from its sales activities.
Peer comparison
Dec 31, 2023
Dec 31, 2023