Fortune Brands Innovations Inc. (FBIN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,011,300 | 2,790,100 | 2,840,600 | 1,456,900 | 3,712,200 |
| Inventory | US$ in thousands | 982,300 | 1,021,300 | 889,500 | 867,200 | 718,600 |
| Inventory turnover | 4.08 | 2.73 | 3.19 | 1.68 | 5.17 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,011,300K ÷ $982,300K
= 4.08
The inventory turnover ratio for Fortune Brands Innovations Inc. has fluctuated over the past five years. In 2023, the company achieved an inventory turnover of 4.08, which indicates that its inventory was turned over approximately 4.08 times during the year. This is an improvement compared to the previous year, where the ratio was 2.73.
The increasing trend in the inventory turnover ratio from 2020 to 2023 suggests that the company has been managing its inventory more efficiently, potentially reducing excess inventory levels and optimizing its supply chain processes.
However, it is worth noting that in 2021, the inventory turnover ratio dipped slightly to 3.19 before rebounding in the following years. This could be due to various factors, such as changes in demand, production delays, or inventory management issues.
Overall, a higher inventory turnover ratio typically indicates better liquidity and efficiency in managing and selling inventory. Fortune Brands Innovations Inc. should continue monitoring its inventory turnover ratio to ensure optimal utilization of its resources and maintain strong operational performance.
Peer comparison
Dec 31, 2023