Graco Inc (GGG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,034,580	1,086,080	953,659	795,178	786,289
Inventory	US$ in thousands	438,349	476,790	382,301	285,704	273,233
Inventory turnover		2.36	2.28	2.49	2.78	2.88

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,034,580K ÷ $438,349K
= 2.36

Graco Inc's inventory turnover has shown a declining trend over the past five years, indicating that the company is taking longer to sell its inventory. This could suggest potential issues with inventory management efficiency or changing demand patterns for its products. A lower inventory turnover ratio may lead to increased holding costs and reduced liquidity. It would be advisable for Graco Inc to closely monitor and address factors contributing to the declining trend in inventory turnover to optimize working capital and improve overall operational effectiveness.

Peer comparison

Dec 31, 2023

Company name

Symbol

Inventory turnover

Graco Inc

GGG

2.36

Enovis Corp

ENOV

3.88

Flowserve Corporation