Graco Inc (GGG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 990,855 | 1,034,580 | 1,086,080 | 953,659 | 795,178 |
| Inventory | US$ in thousands | 404,676 | 438,349 | 476,790 | 382,301 | 285,704 |
| Inventory turnover | 2.45 | 2.36 | 2.28 | 2.49 | 2.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $990,855K ÷ $404,676K
= 2.45
Graco Inc's inventory turnover has exhibited a declining trend over the past five years, starting at 2.78 in December 2020 and decreasing to 2.49 by December 2021, further dropping to 2.28 by December 2022. However, there has been a slight improvement in inventory turnover to 2.36 by December 2023 and a subsequent increase to 2.45 by December 2024.
This decreasing trend is an indication that the company is taking longer to sell its inventory compared to previous years, which can tie up working capital and may lead to increased carrying costs. It is important for Graco Inc to monitor and manage its inventory levels effectively to optimize the turnover rate and ensure efficient operations.
Peer comparison
Dec 31, 2024