Clean Harbors Inc (CLH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,895,280 | 4,494,240 | 4,234,760 | 3,192,000 | 2,636,360 |
| Inventory | US$ in thousands | 384,657 | 327,511 | 324,994 | 250,692 | 220,498 |
| Inventory turnover | 12.73 | 13.72 | 13.03 | 12.73 | 11.96 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,895,280K ÷ $384,657K
= 12.73
Clean Harbors Inc's inventory turnover has shown a positive trend over the past five years, increasing from 11.96 in December 31, 2020, to 12.73 in December 31, 2021, further improving to 13.03 in December 31, 2022, and continuing to rise to 13.72 in December 31, 2023. However, there was a slight decrease to 12.73 in December 31, 2024.
The improvements in inventory turnover indicate that Clean Harbors Inc managed its inventory more efficiently, with a higher rate of inventory turnover. This suggests that the company is selling its inventory at a faster rate, which could lead to reduced carrying costs and potentially better cash flow.
Overall, the upward trend in inventory turnover is a positive sign of operational efficiency and effective inventory management for Clean Harbors Inc.