Carlisle Companies Incorporated (CSL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,952,700 | 3,583,400 | 4,345,500 | 3,855,600 | 3,112,900 |
| Inventory | US$ in thousands | 361,700 | 518,000 | 605,100 | 432,700 | 510,600 |
| Inventory turnover | 8.16 | 6.92 | 7.18 | 8.91 | 6.10 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,952,700K ÷ $361,700K
= 8.16
Carlisle Companies Inc.'s inventory turnover ratio has exhibited fluctuations over the last five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a given period.
The trend for Carlisle Companies Inc. shows that the inventory turnover ratio increased from 6.74 in 2019 to 8.16 in 2023, indicating that the company's inventory is now turning over at a faster rate. This suggests that the company is selling and replacing its inventory more frequently, which can be a positive sign of effective inventory management.
However, it is important to note that in 2020 and 2021, the inventory turnover ratio decreased to 6.08 and 5.78, respectively, before increasing again in 2022 and 2023. This fluctuation may indicate changes in sales volumes, inventory management policies, or market conditions.
Overall, a higher inventory turnover ratio indicates better efficiency in managing inventory and converting it into sales. By improving its inventory turnover ratio, Carlisle Companies Inc. may be able to optimize its working capital and generate higher profits.
Peer comparison
Dec 31, 2023