DXP Enterprises Inc (DXPE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,245,760 | 1,173,310 | 1,058,790 | 785,415 | 725,997 |
| Inventory | US$ in thousands | 103,113 | 103,805 | 101,392 | 100,894 | 97,071 |
| Inventory turnover | 12.08 | 11.30 | 10.44 | 7.78 | 7.48 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,245,760K ÷ $103,113K
= 12.08
Based on the data provided, DXP Enterprises Inc's inventory turnover has shown a steady increase over the years. The inventory turnover ratio, which measures how efficiently the company manages its inventory, has increased from 7.48 in 2020 to 12.08 in 2024.
A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management. This trend suggests that DXP Enterprises Inc has been improving its inventory management practices, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
The significant increase in the inventory turnover ratio over the years indicates that DXP Enterprises Inc is effectively managing its inventory levels and turning its inventory into sales at a faster rate. This can lead to improved cash flow and profitability as the company is able to optimize its inventory levels to meet customer demand while minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2024