DXP Enterprises Inc (DXPE)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,562,160 | 1,566,145 | 1,542,793 | 1,494,134 | 1,402,595 | 1,304,840 | 1,221,480 | 1,150,148 | 1,091,561 | 110,403 | 88,895 | 58,392 | 108,157 | 1,091,355 | 1,135,777 | 1,201,600 | 1,208,558 | 1,210,757 | 1,196,511 | 1,177,207 |
| Inventory | US$ in thousands | 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 | 129,364 | 131,916 | 128,012 | 121,754 |
| Inventory turnover | 15.05 | 14.90 | 14.70 | 13.66 | 13.83 | 9.94 | 10.21 | 10.28 | 10.82 | 1.04 | 0.86 | 0.56 | 1.11 | 9.18 | 8.62 | 9.03 | 9.34 | 9.18 | 9.35 | 9.67 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,562,160K ÷ $103,805K
= 15.05
The inventory turnover ratio of DXP Enterprises Inc has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its inventory. A higher inventory turnover ratio suggests that the company is selling its inventory quickly, which is generally favorable.
Looking at the data, we can see that there was a significant improvement in inventory turnover from March 2021 to June 2021, indicating better inventory management during that period. However, the ratio dropped sharply in the following quarter (September 2021), reaching a low point of 0.86. This suggests inefficiencies in managing inventory during that period.
From December 2021 onwards, there has been a noticeable improvement in the inventory turnover ratio, with the company consistently achieving double-digit ratios. This indicates that DXP Enterprises Inc is effectively managing its inventory and turning it into sales more efficiently.
Overall, it is crucial for the company to maintain a healthy inventory turnover ratio to ensure optimal utilization of resources and liquidity. The recent improvement in the ratio is a positive sign of efficient inventory management, which can lead to improved financial performance and profitability for DXP Enterprises Inc.
Peer comparison
Dec 31, 2023
Dec 31, 2023