Ecolab Inc (ECL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	13,523,500	12,764,100	11,239,000	10,475,700	13,136,500
Inventory	US$ in thousands	1,497,200	1,792,800	1,491,800	1,285,200	1,081,600
Inventory turnover		9.03	7.12	7.53	8.15	12.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $13,523,500K ÷ $1,497,200K
= 9.03

Ecolab, Inc.'s inventory turnover ratio has fluctuated over the past five years. The ratio indicates how efficiently the company manages its inventory by showing how many times a company's inventory is sold and replaced over a specific period.

The inventory turnover ratio for Ecolab, Inc. was 6.11 in 2023, which shows an improvement compared to the previous year. This suggests that the company was able to sell and replace its inventory about 6.11 times during the year. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory and selling its products effectively.

In 2022, the inventory turnover ratio was 4.93, indicating a slight decrease from the previous year. This could suggest that the company may have had some challenges in managing its inventory efficiently during that period.

In 2021, the inventory turnover ratio was 5.11, showing a slight improvement from the previous year. This suggests that the company was able to sell and replace its inventory more times compared to 2020.

Similarly, in 2020 and 2019, the inventory turnover ratios were 5.37 and 5.79, respectively. These figures indicate that the company was consistently managing its inventory efficiently during those years.

Overall, Ecolab, Inc.'s inventory turnover ratios have shown some variability over the years, but generally indicate effective management of inventory and good sales performance.