Clean Harbors Inc (CLH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,494,240 | 4,234,760 | 3,192,000 | 2,636,360 | 2,908,220 |
| Inventory | US$ in thousands | 327,511 | 324,994 | 250,692 | 220,498 | 214,744 |
| Inventory turnover | 13.72 | 13.03 | 12.73 | 11.96 | 13.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,494,240K ÷ $327,511K
= 13.72
Inventory turnover measures how efficiently a company is managing its inventory by analyzing how many times during a period the company sells and replaces its entire inventory. In the case of Clean Harbors, Inc., the inventory turnover ratio has been increasing over the past five years, indicating an improvement in inventory management efficiency.
In 2019, Clean Harbors had an inventory turnover of 11.12, which dropped slightly to 9.70 in 2020 before rising to 10.41 in 2021, 10.90 in 2022, and finally 11.44 in 2023. This trend suggests that the company has been able to sell and replace its inventory more frequently in recent years.
A higher inventory turnover ratio generally indicates that a company is selling products quickly, which can lead to better cash flow and reduced carrying costs. Clean Harbors' consistent improvement in inventory turnover reflects efficient inventory management practices that may help optimize working capital and enhance overall financial performance.
Peer comparison
Dec 31, 2023