Church & Dwight Company Inc (CHD)
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 | 3,279,400 | 3,266,200 | 3,224,200 | 3,188,700 | 3,125,600 | 3,079,600 | 3,044,200 | 2,983,300 | 2,926,600 | 2,877,000 | 2,820,600 | 2,736,400 | 2,681,600 | 2,563,900 | 2,469,800 | 2,433,000 | 2,373,700 | 2,353,600 | 2,349,400 | 2,324,500 |
| Inventory | US$ in thousands | 613,300 | 671,700 | 675,400 | 653,300 | 646,600 | 675,300 | 663,000 | 598,800 | 535,400 | 552,700 | 555,800 | 541,300 | 495,400 | 497,700 | 455,500 | 395,700 | 417,400 | 388,800 | 401,500 | 399,500 |
| Inventory turnover | 5.35 | 4.86 | 4.77 | 4.88 | 4.83 | 4.56 | 4.59 | 4.98 | 5.47 | 5.21 | 5.07 | 5.06 | 5.41 | 5.15 | 5.42 | 6.15 | 5.69 | 6.05 | 5.85 | 5.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,279,400K ÷ $613,300K
= 5.35
Church & Dwight Co., Inc. has consistently maintained a healthy inventory turnover ratio over the past three years. The trend in inventory turnover has shown slight fluctuations but generally remains above 4.5, indicating efficient management of inventory levels.
In the most recent quarter, Q4 2023, the inventory turnover ratio was 5.35, suggesting that the company converted its inventory into sales 5.35 times during the period. This increase from the previous quarter's ratio of 4.86 may indicate improved sales and inventory management efficiency.
Over the past eight quarters, the highest inventory turnover was in Q4 2023, while the lowest was in Q3 2022 at 4.56. Despite these fluctuations, the company has maintained a relatively stable range for its inventory turnover, showing consistency in managing its inventory levels effectively.
The gradual increase from Q2 2022 to Q1 2023 followed by a slight decline in Q2 and Q3 2023 could suggest seasonal variations or changes in market demand affecting inventory turnover. However, the overall trend indicates that Church & Dwight Co., Inc. efficiently manages its inventory to support sales operations and optimize working capital.
Peer comparison
Dec 31, 2023
Dec 31, 2023