Graco Inc (GGG)
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 | 1,034,585 | 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 | 786,289 | 781,060 | 782,361 | 775,654 |
| Inventory | US$ in thousands | 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 | 273,233 | 288,588 | 297,545 | 297,458 |
| Inventory turnover | 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 | 2.88 | 2.71 | 2.63 | 2.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,034,585K ÷ $438,349K
= 2.36
Graco Inc's inventory turnover has fluctuated over the past 4 years, ranging from a low of 2.19 to a high of 2.88. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times it sells and replaces its inventory within a given period.
The trend in Graco Inc's inventory turnover shows a general decrease from 2019 to 2023. The decline in inventory turnover could indicate potential issues such as overstocking, slow-moving inventory, or inefficient management of inventory levels. A lower inventory turnover ratio suggests that the company is not selling its inventory as quickly as in previous periods.
It is important for Graco Inc to closely monitor its inventory turnover ratio and investigate the reasons behind the decreasing trend. By optimizing inventory management practices, the company can improve efficiency, reduce carrying costs, and potentially enhance profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023