ESAB Corp (ESAB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,703,350 | 1,759,020 | 1,707,950 | 1,590,130 | 1,267,600 |
| Inventory | US$ in thousands | 403,711 | 392,858 | 416,829 | 420,062 | 313,386 |
| Inventory turnover | 4.22 | 4.48 | 4.10 | 3.79 | 4.04 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,703,350K ÷ $403,711K
= 4.22
ESAB Corp's inventory turnover over the past five years shows a fluctuating trend. The ratio decreased from 4.04 in December 31, 2020, to 3.79 in December 31, 2021, indicating that the company took longer to sell its inventory in the following year. However, there was an improvement in the inventory turnover in the subsequent years, with ratios of 4.10 in December 31, 2022, 4.48 in December 31, 2023, and 4.22 in December 31, 2024. These higher turnover ratios suggest that ESAB Corp became more efficient in managing its inventory levels and converting them into sales in the later years. Overall, the increasing trend in inventory turnover is a positive sign of effective inventory management within the company.
Peer comparison
Dec 31, 2024