FMC Corporation (FMC)
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 | 3,572,500 | 3,726,400 | 4,031,400 | 4,090,200 | 3,902,500 | 3,534,400 | 3,119,500 | 2,968,400 | 2,873,500 | 2,725,400 | 2,662,400 | 2,584,800 | 2,590,100 | 2,580,600 | 2,544,300 | 2,567,300 | 2,526,200 | 2,492,600 | 2,439,100 | 2,447,500 |
| Inventory | US$ in thousands | 1,724,600 | 1,998,600 | 2,072,300 | 1,910,900 | 1,651,600 | 1,731,500 | 1,590,400 | 1,590,700 | 1,521,900 | 1,450,500 | 1,398,100 | 1,254,700 | 1,095,600 | 1,155,500 | 1,138,500 | 1,062,700 | 1,017,000 | 1,167,400 | 1,153,400 | 1,137,100 |
| Inventory turnover | 2.07 | 1.86 | 1.95 | 2.14 | 2.36 | 2.04 | 1.96 | 1.87 | 1.89 | 1.88 | 1.90 | 2.06 | 2.36 | 2.23 | 2.23 | 2.42 | 2.48 | 2.14 | 2.11 | 2.15 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,572,500K ÷ $1,724,600K
= 2.07
The inventory turnover for FMC Corp. has been relatively consistent over the past eight quarters, ranging from a low of 1.44 in Q3 2023 to a high of 2.10 in Q4 2022. This indicates that, on average, the company is able to sell through its inventory approximately 1.61 times per year.
A lower inventory turnover ratio suggests slower sales relative to the amount of inventory on hand, which could indicate overstocking or potential issues with demand for the company's products. In contrast, a higher inventory turnover ratio signifies efficient inventory management and better sales performance.
While FMC Corp. has experienced some fluctuations in its inventory turnover, the ratios generally remain within a relatively stable range, which could indicate that the company has a consistent approach to inventory management. Overall, further analysis of the company's sales trends, production efficiency, and inventory policies could provide deeper insights into the effectiveness of FMC Corp.'s inventory turnover.
Peer comparison
Dec 31, 2023
Dec 31, 2023