Chemed Corp (CHE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,576,940 | 1,467,860 | 1,369,880 | 1,369,460 | 1,378,200 |
| Inventory | US$ in thousands | 8,193 | 12,004 | 10,272 | 10,109 | 7,095 |
| Inventory turnover | 192.47 | 122.28 | 133.36 | 135.47 | 194.25 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,576,940K ÷ $8,193K
= 192.47
Chemed Corp's inventory turnover has fluctuated over the years based on the provided data. In 2020, the inventory turnover stood at 194.25, indicating that the company sold and replaced its inventory nearly 194 times during the year. However, this ratio decreased to 135.47 in 2021 and further dropped to 133.36 in 2022. By the end of 2023, the inventory turnover decreased to 122.28, reflecting a lower rate of inventory turnover compared to previous years. Nevertheless, there was a significant increase in inventory turnover in 2024, reaching 192.47.
Overall, the trend indicates some variability in Chemed Corp's ability to manage its inventory efficiently over the years. It will be essential to further investigate the reasons behind these fluctuations to assess the company's inventory management practices and their impact on profitability.
Peer comparison
Dec 31, 2024