Dow Inc (DOW)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 40,473,000 | 40,654,000 | 40,397,000 | 40,708,000 | 42,330,000 | 43,262,000 | 46,031,000 | 49,079,000 | 50,574,000 | 51,802,000 | 51,087,000 | 48,963,000 | 46,307,000 | 43,133,000 | 39,371,000 | 35,660,000 | 33,346,000 | 32,929,000 | 33,935,000 | 35,745,000 |
| Inventory | US$ in thousands | 6,544,000 | 6,741,000 | 6,459,000 | 6,373,000 | 6,076,000 | 6,211,000 | 6,487,000 | 6,825,000 | 6,988,000 | 7,571,000 | 8,225,000 | 7,760,000 | 7,372,000 | 7,111,000 | 6,952,000 | 6,157,000 | 5,701,000 | 5,609,000 | 5,784,000 | 6,324,000 |
| Inventory turnover | 6.18 | 6.03 | 6.25 | 6.39 | 6.97 | 6.97 | 7.10 | 7.19 | 7.24 | 6.84 | 6.21 | 6.31 | 6.28 | 6.07 | 5.66 | 5.79 | 5.85 | 5.87 | 5.87 | 5.65 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $40,473,000K ÷ $6,544,000K
= 6.18
Dow Inc's inventory turnover has shown a generally increasing trend over the past few years, indicating improved efficiency in managing its inventory. The inventory turnover ratio has increased from 5.65 in March 2020 to 6.18 in December 2024. This suggests that the company is selling its inventory at a faster pace, which can be a positive sign of effective inventory management.
The highest inventory turnover ratio was recorded in December 2022 at 7.24, indicating that the inventory was turning over approximately 7.24 times during that period. This may suggest that Dow Inc was able to efficiently sell and replenish its inventory during that time.
Despite some fluctuations, the overall trend of increasing inventory turnover ratios signifies that Dow Inc has been successful in optimizing its inventory levels and sales processes. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory and generating sales from its existing stock. This can lead to improved cash flows and profitability for the company.
Peer comparison
Dec 31, 2024
Dec 31, 2024