FMC Corporation (FMC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,597,200 | 2,655,800 | 3,475,500 | 2,873,500 | 2,590,100 |
| Inventory | US$ in thousands | 1,201,600 | 1,724,600 | 1,651,600 | 1,405,700 | 1,095,600 |
| Inventory turnover | 2.16 | 1.54 | 2.10 | 2.04 | 2.36 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,597,200K ÷ $1,201,600K
= 2.16
The inventory turnover ratio for FMC Corporation has exhibited fluctuations over the past five years. In December 2020, the ratio stood at 2.36, indicating that the company turned over its inventory approximately 2.36 times during that year. However, there was a decrease in inventory turnover to 2.04 by December 2021, which suggests a longer time to sell and replace inventory.
A slight improvement was seen in December 2022, with the ratio increasing to 2.10, but a significant decline occurred in December 2023, where the ratio dropped to 1.54, signifying a slowdown in inventory turnover efficiency.
Nonetheless, there was a recovery in December 2024, with the ratio rising back to 2.16, indicating a better performance in managing inventory turnover compared to the previous year. Overall, FMC Corporation's inventory turnover has been showing variability, which may require further analysis to understand the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024