Expeditors International of Washington, Inc. (EXPD)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	9,251,480	8,054,630	14,900,200	14,358,100	8,421,630
Inventory	US$ in thousands	—	—	257,545	987,266	327,448
Inventory turnover		—	—	57.85	14.54	25.72

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,251,480K ÷ $—K
= —

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by assessing how many times the company's inventory is sold and replaced over a specific period. Looking at Expeditors International of Washington, Inc.'s inventory turnover over the past few years, we observe fluctuations in the ratio.

As of December 31, 2020, the inventory turnover was 25.72, indicating that the company's inventory was sold and replaced approximately 25.72 times during that year. This high turnover ratio suggests that Expeditors International efficiently managed its inventory and turned it over quickly.

However, by December 31, 2021, the inventory turnover had decreased to 14.54. This decline may indicate a slowdown in sales relative to the amount of inventory held by the company, which could be a sign of inefficiency in inventory management or a change in the company's sales patterns.

The following year, on December 31, 2022, the inventory turnover significantly increased to 57.85, showing a substantial improvement in inventory management efficiency. This sharp rise may imply that Expeditors International was able to sell and replace its inventory at a much faster rate, potentially resulting in lower holding costs and better cash flow management.

However, the data is not available for December 31, 2023 and December 31, 2024, indicated by "—". The absence of data for these years makes it challenging to provide a complete analysis of the company's inventory turnover trend during these periods.

Overall, fluctuations in Expeditors International's inventory turnover ratio over the years suggest varying levels of efficiency in managing inventory. It is essential for the company to monitor and improve its inventory turnover to ensure optimal utilization of resources and maximize profitability.