Ecolab Inc (ECL)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	8,895,600	8,907,700	8,977,600	9,070,900	9,149,600	9,125,400	9,086,500	8,962,800	8,831,000	8,619,200	8,344,300	7,977,200	7,615,800	7,353,000	7,105,900	6,897,600	7,302,400	7,740,300	8,178,100	8,750,600
Inventory	US$ in thousands	1,464,900	1,572,400	1,505,900	1,565,900	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
Inventory turnover		6.07	5.67	5.96	5.79	6.11	5.94	5.52	5.19	4.93	4.78	4.85	5.02	5.11	5.34	5.01	5.12	5.68	6.01	6.66	5.72

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,895,600K ÷ $1,464,900K
= 6.07

Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory. For Ecolab Inc, the inventory turnover has shown some fluctuations over the reported periods. From March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 4.78 to a high of 6.66 times.

A higher inventory turnover indicates that Ecolab is selling and replenishing its inventory more frequently, which can suggest effective inventory management. In contrast, a lower turnover can signal slower sales or excess inventory, potentially leading to carrying costs and obsolescence risks.

Overall, the inventory turnover for Ecolab Inc has hovered around the range of 4.78 to 6.66 times over the reported periods, showcasing a reasonable efficiency in managing its inventory levels. However, it is essential for the company to monitor and optimize its inventory turnover to strike a balance between avoiding stockouts and reducing carrying costs.