Alphabet Inc Class C (GOOG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 133,332,000 | 126,203,000 | 110,939,000 | 84,732,000 | 71,896,000 |
| Inventory | US$ in thousands | — | 2,670,000 | 1,170,000 | 728,000 | 999,000 |
| Inventory turnover | — | 47.27 | 94.82 | 116.39 | 71.97 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $133,332,000K ÷ $—K
= —
The inventory turnover ratio measures the efficiency with which a company manages its inventory. A higher turnover ratio indicates that the company is selling its inventory more frequently, which can be a sign of efficient inventory management.
In the case of Alphabet Inc, the inventory turnover decreased from 2019 to 2022, indicating a decrease in the frequency of inventory sold. However, in 2023, the ratio is not available. It is important to note that a high turnover ratio may also indicate risk of stockouts or lost sales due to insufficient inventory levels. Therefore, the decrease in inventory turnover may result in a more optimal inventory level for Alphabet Inc.
However, without the 2023 data, a comprehensive analysis of the trend cannot be determined. It is advisable to monitor subsequent data to identify any potential changes in inventory management efficiency.
Peer comparison
Dec 31, 2023