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


See also:

Ecolab Inc Inventory Turnover (Quarterly Data)