Ecolab Inc (ECL)
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 | 13,446,300 | 13,304,100 | 13,120,400 | 12,927,100 | 12,723,600 | 12,457,600 | 12,114,900 | 11,634,500 | 11,206,300 | 10,885,200 | 10,609,900 | 10,335,500 | 10,914,600 | 11,526,900 | 12,145,400 | 12,961,900 | 12,961,600 | 12,925,000 | 12,909,400 | 12,880,800 |
Inventory | US$ in thousands | 1,497,200 | 1,536,000 | 1,646,200 | 1,727,300 | 1,792,800 | 1,802,700 | 1,720,700 | 1,589,900 | 1,491,800 | 1,378,200 | 1,418,500 | 1,347,000 | 1,285,200 | 1,287,800 | 1,228,700 | 1,529,700 | 1,081,600 | 1,586,700 | 1,625,300 | 1,645,600 |
Inventory turnover | 8.98 | 8.66 | 7.97 | 7.48 | 7.10 | 6.91 | 7.04 | 7.32 | 7.51 | 7.90 | 7.48 | 7.67 | 8.49 | 8.95 | 9.88 | 8.47 | 11.98 | 8.15 | 7.94 | 7.83 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,446,300K ÷ $1,497,200K
= 8.98
Inventory turnover is a key efficiency ratio that measures how well a company manages its inventory levels by showing the number of times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally indicates more efficient inventory management.
Looking at the data for Ecolab, Inc. over the last eight quarters, we can see that the inventory turnover ratio has been relatively stable, with values ranging from 4.78 to 6.11. This indicates that Ecolab has been consistently effective in managing its inventory levels.
In Q4 2023, the inventory turnover ratio was 6.11, which suggests that Ecolab was able to sell and replace its inventory approximately 6.11 times during that quarter. This represents an improvement compared to the previous quarters, where the ratio ranged from 4.78 to 5.52.
Overall, the trend in inventory turnover for Ecolab appears positive, indicating that the company has been able to effectively control its inventory levels and convert them into sales. This efficiency in inventory management can help reduce carrying costs and improve the company's overall profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023