Entegris Inc (ENTG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,754,490 | 2,026,320 | 1,885,620 | 1,239,230 | 1,009,590 |
| Inventory | US$ in thousands | 638,080 | 607,051 | 812,815 | 475,213 | 323,944 |
| Inventory turnover | 2.75 | 3.34 | 2.32 | 2.61 | 3.12 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,754,490K ÷ $638,080K
= 2.75
Based on the data provided for Entegris Inc's inventory turnover, we can observe fluctuations in this ratio over the years. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels. A higher turnover ratio is generally preferred as it suggests that the company is selling its inventory more quickly.
In December 2020, Entegris Inc had an inventory turnover ratio of 3.12, indicating that the company turned over its inventory approximately 3.12 times during that year. The ratio decreased to 2.61 by December 2021, which may reflect a slower rate of inventory turnover compared to the previous year.
Further, by December 2022, the inventory turnover ratio declined to 2.32, signaling a potential inefficiency in managing and selling inventory. However, there was an improvement in December 2023 with the ratio increasing to 3.34, indicating a more efficient use of inventory.
Lastly, by December 2024, the inventory turnover ratio decreased slightly to 2.75, which is still higher than the ratios observed in 2021 and 2022 but lower than the peak ratio in 2023.
Overall, the trend in Entegris Inc's inventory turnover suggests fluctuations in the company's ability to efficiently manage and sell its inventory. It would be important for the company to closely monitor and possibly optimize its inventory management processes to sustain or improve its inventory turnover ratio in the future.
Peer comparison
Dec 31, 2024