Fortune Brands Innovations Inc. (FBIN)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,011,400 | 3,643,600 | 3,295,500 | 3,026,600 | 2,790,100 | 2,852,600 | 2,894,700 | 2,877,900 | 2,840,600 | 3,170,500 | 3,483,300 | 3,650,800 | 3,925,900 | 3,812,600 | 3,675,900 | 3,752,600 | 3,712,200 | 3,692,400 | 3,644,500 | 3,579,800 |
| Inventory | US$ in thousands | 982,300 | 930,000 | 954,500 | 931,100 | 1,021,300 | 1,502,300 | 1,446,700 | 1,334,700 | 889,500 | 1,128,300 | 1,046,800 | 958,400 | 867,200 | 738,300 | 732,300 | 703,100 | 718,600 | 758,800 | 741,900 | 737,900 |
| Inventory turnover | 4.08 | 3.92 | 3.45 | 3.25 | 2.73 | 1.90 | 2.00 | 2.16 | 3.19 | 2.81 | 3.33 | 3.81 | 4.53 | 5.16 | 5.02 | 5.34 | 5.17 | 4.87 | 4.91 | 4.85 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,011,400K ÷ $982,300K
= 4.08
The inventory turnover ratio for Fortune Brands Innovations Inc. fluctuated over the past five years, indicating variations in the company's efficiency in managing its inventory. The ratio measures how many times the company sells and replaces its inventory during a specific period.
In the most recent quarter, the company's inventory turnover stood at 4.08, which implies that Fortune Brands Innovations Inc. sold and replaced its inventory approximately four times during the period. This figure demonstrates an improvement compared to the preceding quarters, indicating more efficient inventory management.
Looking back over the five-year period, there have been fluctuations in the inventory turnover ratio, with some quarters showing a higher turnover rate than others. For instance, there were noticeable peaks in inventory turnover in the latter half of 2020 and throughout 2021, suggesting a period of effective inventory management and quicker sales cycles.
On the other hand, there were quarters where the inventory turnover was lower, such as in late 2019 and early 2020, which may indicate slower inventory movement or potential issues with inventory control during those periods.
Overall, the trend in inventory turnover for Fortune Brands Innovations Inc. indicates a varying level of efficiency in handling inventory over the past five years, with some periods showcasing improved management practices and others possibly signaling challenges that led to lower turnover rates. It would be beneficial for the company to further analyze these trends to identify the factors influencing inventory turnover and optimize its inventory management strategies accordingly.
Peer comparison
Dec 31, 2023
Dec 31, 2023