Comfort Systems USA Inc (FIX)
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 | 4,216,245 | 4,044,305 | 3,861,473 | 3,635,919 | 3,398,756 | 3,194,829 | 2,951,725 | 2,696,209 | 2,510,429 | 2,370,378 | 2,262,597 | 2,272,930 | 2,309,676 | 2,334,738 | 2,332,051 | 2,264,564 | 2,113,334 | 1,996,494 | 1,898,946 | 1,792,520 |
| Inventory | US$ in thousands | 65,538 | 53,899 | 41,619 | 37,013 | 35,309 | 38,149 | 31,246 | 24,918 | 21,853 | 19,908 | 18,837 | 15,653 | 13,472 | 12,700 | 12,212 | 10,312 | 10,053 | 12,667 | 12,734 | 12,908 |
| Inventory turnover | 64.33 | 75.03 | 92.78 | 98.23 | 96.26 | 83.75 | 94.47 | 108.20 | 114.88 | 119.07 | 120.11 | 145.21 | 171.44 | 183.84 | 190.96 | 219.60 | 210.22 | 157.61 | 149.12 | 138.87 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,216,245K ÷ $65,538K
= 64.33
Comfort Systems USA, Inc.'s inventory turnover has shown fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times in a given period the inventory is sold and replenished.
Looking at the data provided, we observe that inventory turnover peaked in Q1 2023 at 98.23 times and has generally shown a decreasing trend since then. However, the ratios have remained relatively high, indicating that the company has been able to sell and replace its inventory multiple times in a year.
The lower inventory turnover ratios in more recent quarters may suggest that the company is carrying more inventory on hand. It is important to further investigate whether this increase in inventory is due to an increase in demand, changes in production levels, or inefficiencies in inventory management.
Overall, while the fluctuations in inventory turnover indicate changes in the efficiency of inventory management at Comfort Systems USA, Inc., the consistently high ratios suggest that the company is effectively managing its inventory to meet demand and drive sales.
Peer comparison
Dec 31, 2023
Dec 31, 2023