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