Comfort Systems USA Inc (FIX)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 4,216,250 3,398,760 2,510,430 2,309,680 2,113,330
Inventory US$ in thousands 65,538 35,309 21,853 13,472 10,053
Inventory turnover 64.33 96.26 114.88 171.44 210.22

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,216,250K ÷ $65,538K
= 64.33

Comfort Systems USA, Inc. has seen a consistent decline in inventory turnover over the past five years. The inventory turnover ratio has decreased from 210.22 in 2019 to 64.33 in 2023. This indicates that the company is taking longer to sell its inventory, which may raise concerns about the efficiency of inventory management. A lower inventory turnover could imply higher holding costs, potential obsolescence, or challenges in sales and production planning. Further investigation into the reasons behind this declining trend is recommended to address any operational inefficiencies and improve inventory management practices.


Peer comparison

Dec 31, 2023

Company name
Symbol
Inventory turnover
Comfort Systems USA Inc
FIX
64.33
EMCOR Group Inc
EME
94.73
Quanta Services Inc
PWR
112.69