Dow Inc (DOW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 40,473,000 | 42,330,000 | 50,574,000 | 46,307,000 | 33,346,000 |
| Inventory | US$ in thousands | 6,544,000 | 6,076,000 | 6,988,000 | 7,372,000 | 5,701,000 |
| Inventory turnover | 6.18 | 6.97 | 7.24 | 6.28 | 5.85 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $40,473,000K ÷ $6,544,000K
= 6.18
To analyze Dow Inc's inventory turnover, we calculated the inventory turnover ratio for the years 2020 to 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times a company sells its average inventory in a specific period.
Based on the data provided:
- In December 31, 2020, the inventory turnover ratio was 5.85.
- In December 31, 2021, the inventory turnover ratio increased to 6.28.
- By December 31, 2022, the inventory turnover ratio further improved to 7.24.
- In December 31, 2023, the ratio slightly declined to 6.97.
- Lastly, by December 31, 2024, the inventory turnover ratio decreased to 6.18.
Overall, Dow Inc has shown an improving trend in its inventory turnover ratio from 2020 to 2022, indicating that the company is managing its inventory more efficiently and selling products more quickly. The slight declines in 2023 and 2024 may suggest some fluctuations in inventory management efficiency.
Further analysis and comparisons with industry benchmarks would provide more insights into Dow Inc's inventory management performance and efficiency.
Peer comparison
Dec 31, 2024