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.