Colgate-Palmolive Company (CL)

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	8,131,000	8,186,000	8,055,000	7,950,000	7,719,000	7,508,000	7,392,000	7,166,000	7,046,000	6,883,000	6,705,000	6,529,000	6,454,000	6,374,000	6,373,000	6,403,000	6,368,000	6,325,000	6,289,000	6,316,000
Inventory	US$ in thousands	1,934,000	1,931,000	2,039,000	2,110,000	2,074,000	2,073,000	2,012,000	1,924,000	1,692,000	1,670,000	1,700,000	1,676,000	1,673,000	1,578,000	1,524,000	1,301,000	1,400,000	1,371,000	1,322,000	1,278,000
Inventory turnover		4.20	4.24	3.95	3.77	3.72	3.62	3.67	3.72	4.16	4.12	3.94	3.90	3.86	4.04	4.18	4.92	4.55	4.61	4.76	4.94

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,131,000K ÷ $1,934,000K
= 4.20

The inventory turnover ratio for Colgate-Palmolive Co. has been relatively stable over the past eight quarters, ranging from 3.62 to 4.24. This indicates the company's efficiency in managing its inventory levels and converting them into sales.

The average inventory turnover ratio for the last eight quarters is approximately 3.9, suggesting that, on average, Colgate-Palmolive Co. sells its entire inventory approximately 3.9 times a year.

The increase in the inventory turnover ratio from Q1 2022 to Q3 2023 indicates an improvement in inventory management efficiency, possibly due to better demand forecasting or inventory control measures implemented by the company.

Overall, Colgate-Palmolive Co.'s inventory turnover ratio reflects a healthy balance between maintaining optimal inventory levels and maximizing sales, which is crucial for profitability and liquidity.