Ecolab Inc (ECL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	8,899,700	9,132,400	8,831,000	7,615,800	6,905,800
Inventory	US$ in thousands	1,464,900	1,497,200	1,792,800	1,491,800	1,285,200
Inventory turnover		6.08	6.10	4.93	5.11	5.37

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,899,700K ÷ $1,464,900K
= 6.08

Based on the inventory turnover data provided for Ecolab Inc over the past five years, the company's performance in managing its inventory can be analyzed. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a period, reflecting the efficiency of inventory management.

Ecolab Inc's inventory turnover has shown a generally stable trend from 2020 to 2024. In 2020, the inventory turnover ratio was 5.37, indicating that the company sold and replaced its inventory approximately 5.37 times during that year. Subsequently, there was a slight decrease in the inventory turnover ratio in 2021 and 2022, with values of 5.11 and 4.93, respectively. This decline may suggest a longer inventory holding period or slower sales during these years.

However, Ecolab Inc significantly improved its inventory turnover performance in 2023 and 2024, with ratios of 6.10 and 6.08, respectively. These higher ratios indicate that the company was able to sell and replace its inventory more frequently during these years, possibly due to better inventory management practices or increased sales efficiency.

Overall, Ecolab Inc's inventory turnover indicates that the company has been effectively managing its inventory turnover ratio over the past five years. The uptick in the ratio in 2023 and 2024 demonstrates positive trends in inventory management efficiency, which could contribute to improved overall financial performance.