PC Connection Inc (CNXN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,757,460 | 3,016,420 | 2,808,280 | 2,530,830 | 2,720,670 |
| Inventory | US$ in thousands | 124,179 | 208,682 | 206,555 | 140,867 | 124,666 |
| Inventory turnover | 22.21 | 14.45 | 13.60 | 17.97 | 21.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,757,460K ÷ $124,179K
= 22.21
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. A higher inventory turnover indicates that the company is selling its inventory quickly and efficiently, while a lower turnover may suggest inefficiencies in inventory management.
For PC Connection Inc, the inventory turnover has fluctuated over the past five years. In 2023, the inventory turnover was at 22.21, significantly higher than the previous year, indicating that the company sold its inventory over 22 times during the year. This may suggest a more efficient inventory management system for the company in 2023.
In 2022, the inventory turnover was 14.45, lower than in 2021, but still above 10, indicating that the company was able to sell its inventory approximately 14 times during the year. This could imply that there were some improvements in inventory management compared to the previous year.
In 2021, the inventory turnover was 13.60, showing a slight decrease compared to 2020 when the turnover was 17.97. This could suggest that the company took longer to sell its inventory in 2021, potentially due to factors like changes in demand or inefficiencies in inventory control.
Overall, PC Connection Inc has shown varying levels of inventory turnover over the past five years, with the highest turnover in 2023. It is important for the company to continue monitoring and improving its inventory management practices to ensure optimal efficiency and profitability in the future.
Peer comparison
Dec 31, 2023