DXP Enterprises Inc (DXPE)
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 | 1,245,763 | 1,207,549 | 1,174,411 | 1,162,836 | 1,169,119 | 1,179,947 | 1,161,941 | 1,129,303 | 1,058,794 | 972,252 | 899,122 | 835,885 | 785,365 | 745,273 | 701,614 | 683,006 | 725,997 | 774,730 | 850,312 | 909,938 |
| Inventory | US$ in thousands | 103,113 | 109,787 | 107,483 | 108,186 | 103,805 | 105,145 | 104,950 | 109,403 | 101,392 | 131,290 | 119,694 | 111,862 | 100,894 | 106,376 | 103,447 | 103,407 | 97,071 | 118,864 | 131,828 | 133,021 |
| Inventory turnover | 12.08 | 11.00 | 10.93 | 10.75 | 11.26 | 11.22 | 11.07 | 10.32 | 10.44 | 7.41 | 7.51 | 7.47 | 7.78 | 7.01 | 6.78 | 6.61 | 7.48 | 6.52 | 6.45 | 6.84 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,245,763K ÷ $103,113K
= 12.08
DXP Enterprises Inc's inventory turnover has shown an increasing trend over the period under review, starting at 6.84 on March 31, 2020, and reaching 12.08 on December 31, 2024. This indicates that the company has been able to sell its inventory more frequently over time. A higher inventory turnover ratio generally signifies that inventory is being managed efficiently and effectively, as it indicates that the company is selling its goods more quickly.
The company experienced fluctuations in its inventory turnover ratio within the timeframe, with some quarters showing slight decreases or increases. However, the overall trend has been positive, with the ratio consistently improving. This suggests that DXP Enterprises has been successful in managing its inventory levels, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
A significant increase in inventory turnover, as seen towards the end of the period, could indicate improved sales efficiency, better inventory management practices, or an enhancement in demand for the company's products. This can positively impact the company's liquidity and profitability, as higher inventory turnover often correlates with higher levels of profitability.
It is essential for DXP Enterprises to continue monitoring and analyzing its inventory turnover ratio to ensure that it remains at an optimal level. Maintaining an efficient inventory turnover ratio is crucial for sustainable operations and financial performance in the long run.
Peer comparison
Dec 31, 2024
Dec 31, 2024