PC Connection Inc (CNXN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,717,620 | 2,757,460 | 3,016,420 | 2,808,280 | 2,530,830 |
| Inventory | US$ in thousands | 95,054 | 124,179 | 208,682 | 206,555 | 140,867 |
| Inventory turnover | 28.59 | 22.21 | 14.45 | 13.60 | 17.97 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,717,620K ÷ $95,054K
= 28.59
PC Connection Inc's inventory turnover has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The inventory turnover ratio measures the efficiency of a company in managing its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally more favorable.
In December 2020, PC Connection Inc had an inventory turnover of 17.97, indicating that the company was selling its inventory approximately 18 times during the year. However, this ratio decreased to 13.60 by December 2021, suggesting a slowdown in inventory turnover.
Subsequently, the inventory turnover improved to 14.45 by December 2022, indicating a slight recovery in inventory management efficiency. The ratio further increased significantly to 22.21 by December 2023, suggesting a notable improvement in inventory turnover.
By December 2024, PC Connection Inc achieved a substantial inventory turnover ratio of 28.59, reflecting a substantial increase in the frequency of inventory turnover. This significant improvement indicates that the company was managing its inventory efficiently and effectively selling its products.
Overall, the fluctuation in PC Connection Inc's inventory turnover ratio signifies varying levels of efficiency in inventory management over the five-year period, with a notable improvement in recent years, particularly in 2023 and 2024.
Peer comparison
Dec 31, 2024