Comfort Systems USA Inc (FIX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,551,060 | 4,216,250 | 3,398,760 | 2,510,430 | 2,309,680 |
| Inventory | US$ in thousands | 59,224 | 65,538 | 35,309 | 21,853 | 13,472 |
| Inventory turnover | 93.73 | 64.33 | 96.26 | 114.88 | 171.44 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,551,060K ÷ $59,224K
= 93.73
Comfort Systems USA Inc's inventory turnover has exhibited a declining trend over the past five years. In December 31, 2020, the inventory turnover stood at an impressive 171.44, signifying efficient management of inventory. However, this metric experienced a gradual decrease in subsequent years, reaching 114.88 in December 31, 2021, and further declining to 96.26 in December 31, 2022.
The decreasing trend continued as the inventory turnover fell to 64.33 in December 31, 2023, indicating a slowdown in the company's ability to convert its inventory into sales. The inventory turnover then rebounded somewhat to 93.73 by December 31, 2024, but remained below the levels seen in earlier years.
The declining inventory turnover could suggest potential issues such as overstocking, slowing sales, or ineffective inventory management practices. This trend may warrant a closer examination of Comfort Systems USA Inc's inventory management strategies to identify opportunities for improvement and operational efficiencies.
Peer comparison
Dec 31, 2024