Carlisle Companies Incorporated (CSL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,115,900 | 3,042,900 | 4,434,500 | 3,495,600 | 2,832,500 |
| Inventory | US$ in thousands | 472,700 | 361,700 | 748,800 | 605,100 | 432,700 |
| Inventory turnover | 6.59 | 8.41 | 5.92 | 5.78 | 6.55 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,115,900K ÷ $472,700K
= 6.59
The inventory turnover ratio for Carlisle Companies Incorporated has exhibited fluctuations over the past five years. Starting at 6.55 in December 2020, the ratio decreased slightly to 5.78 by December 2021, indicating a longer time taken to sell through the inventory. Despite a marginal increase to 5.92 by December 2022, the ratio remained relatively low, suggesting inefficiencies in inventory management.
A notable improvement was seen by December 2023, with the inventory turnover ratio jumping to 8.41. This surge signifies that Carlisle was able to sell and replenish its inventory at a much faster rate, potentially due to better demand forecasting or streamlined operations. However, this high ratio was not sustained in the following year, as the ratio decreased to 6.59 by December 2024.
Overall, while Carlisle Companies Incorporated experienced some variability in its inventory turnover ratio, it is essential for the company to consistently monitor and optimize its inventory management practices to ensure efficient use of resources and timely conversion of inventory into sales.
Peer comparison
Dec 31, 2024