Eastman Chemical Company (EMN)
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 | 7,069,000 | 7,134,000 | 8,841,000 | 8,840,000 | 8,945,000 | 9,186,000 | 7,788,000 | 8,162,000 | 8,443,000 | 8,581,000 | 8,471,000 | 8,329,000 | 7,976,000 | 7,501,000 | 7,064,000 | 6,645,000 | 6,498,000 | 6,546,000 | 6,676,000 | 6,897,000 |
| Inventory | US$ in thousands | 1,988,000 | 1,904,000 | 1,900,000 | 1,769,000 | 1,683,000 | 1,721,000 | 1,960,000 | 1,944,000 | 1,894,000 | 1,975,000 | 1,826,000 | 1,671,000 | 1,504,000 | 1,630,000 | 1,501,000 | 1,505,000 | 1,379,000 | 1,338,000 | 1,419,000 | 1,659,000 |
| Inventory turnover | 3.56 | 3.75 | 4.65 | 5.00 | 5.31 | 5.34 | 3.97 | 4.20 | 4.46 | 4.34 | 4.64 | 4.98 | 5.30 | 4.60 | 4.71 | 4.42 | 4.71 | 4.89 | 4.70 | 4.16 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,069,000K ÷ $1,988,000K
= 3.56
The inventory turnover ratio is a measure of how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced over a specific period. Looking at Eastman Chemical Company's inventory turnover over the past few years, we observe fluctuations in the ratio.
From March 31, 2020, to December 31, 2022, the company's inventory turnover ratio ranged between 4.16 and 5.30, indicating that the company was able to efficiently manage its inventory turnover during this period.
However, from March 31, 2023, to December 31, 2024, the inventory turnover ratio decreased gradually, reaching as low as 3.56. This decline may suggest potential inefficiencies in inventory management or slowing sales relative to the amount of inventory held.
Overall, monitoring the inventory turnover ratio is important for Eastman Chemical Company to ensure effective inventory management and to optimize its working capital efficiency. If the trend of decreasing inventory turnover continues, the company may need to reassess its inventory control strategies to maintain operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024