Graco Inc (GGG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 990,855 | 988,164 | 1,000,230 | 1,016,070 | 1,034,584 | 1,050,112 | 1,079,520 | 1,090,778 | 1,086,082 | 1,068,915 | 1,022,821 | 986,674 | 953,659 | 914,113 | 886,014 | 827,037 | 795,178 | 772,573 | 755,386 | 772,397 |
| Inventory | US$ in thousands | 404,676 | 440,917 | 457,604 | 459,118 | 438,349 | 457,604 | 479,095 | 497,242 | 476,790 | 462,220 | 450,974 | 436,741 | 382,301 | 362,932 | 337,525 | 311,645 | 285,704 | 283,713 | 291,442 | 289,567 |
| Inventory turnover | 2.45 | 2.24 | 2.19 | 2.21 | 2.36 | 2.29 | 2.25 | 2.19 | 2.28 | 2.31 | 2.27 | 2.26 | 2.49 | 2.52 | 2.63 | 2.65 | 2.78 | 2.72 | 2.59 | 2.67 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $990,855K ÷ $404,676K
= 2.45
Graco Inc's inventory turnover has displayed some fluctuations over the past few years, ranging from a low of 2.19 to a high of 2.78. The figures indicate how efficiently the company is managing its inventory. A higher turnover ratio generally suggests effective inventory management, as it implies that the company is selling its products more quickly and is not holding excessive amounts of inventory for extended periods.
Looking at the trend over the periods, the inventory turnover ratio has shown a slight decline from 2.67 on March 31, 2020, to 2.45 on December 31, 2024. This downward trend may indicate potential issues with inventory management, such as overstocking or slower sales. However, it is important to consider industry norms and the company's specific business model when interpreting these figures.
Overall, Graco Inc's inventory turnover ratio, while experiencing some fluctuations, has remained within a relatively narrow range, suggesting that the company has maintained a reasonable level of efficiency in managing its inventory levels. It would be beneficial for the company to monitor this ratio closely and take appropriate action to address any potential issues that may be impacting inventory turnover.
Peer comparison
Dec 31, 2024
Dec 31, 2024