Fortune Brands Innovations Inc. (FBIN)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,964,300 | 3,972,700 | 4,087,200 | 4,057,400 | 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 |
| Inventory | US$ in thousands | 960,300 | 962,600 | 990,500 | 1,025,200 | 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 |
| Inventory turnover | 3.09 | 4.13 | 4.13 | 3.96 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,964,300K ÷ $960,300K
= 3.09
Fortune Brands Innovations Inc.'s inventory turnover has shown fluctuations over the past few years. The inventory turnover ratio is used to measure how efficiently the company is managing its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio steadily decreased from 5.34 to 2.00, indicating a decreasing efficiency in managing inventory levels. This declining trend may suggest issues such as overstocking or slow-moving inventory during this period.
However, from September 30, 2022, to December 31, 2024, the inventory turnover ratio started to improve, showing a gradual increase from 1.90 to 4.13. This uptrend may indicate better inventory management practices, including faster sales cycles or tighter control over inventory levels.
Overall, Fortune Brands Innovations Inc. should continue monitoring its inventory turnover ratio to ensure optimal inventory management and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024