Chart Industries Inc (GTLS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,771,500 | 2,312,100 | 1,205,000 | 993,500 | 845,000 |
| Inventory | US$ in thousands | 490,500 | 576,300 | 357,900 | 321,500 | 248,400 |
| Inventory turnover | 5.65 | 4.01 | 3.37 | 3.09 | 3.40 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,771,500K ÷ $490,500K
= 5.65
The inventory turnover for Chart Industries Inc has shown some fluctuations over the past five years.
In 2020, the inventory turnover was 3.40, indicating that the company's inventory was sold and replaced approximately 3.40 times during that year. This suggests a moderate efficiency in managing its inventory.
By the end of 2021, the inventory turnover decreased to 3.09, showing a slight decline in the rate at which the company's inventory was turned into sales.
However, in 2022, the inventory turnover improved to 3.37, indicating a modest recovery in inventory management efficiency.
In 2023, the inventory turnover further increased to 4.01, reflecting a notable improvement in inventory turnover efficiency. This could suggest effective inventory management or an increase in sales volume relative to inventory levels.
The most significant improvement was seen by the end of 2024, with the inventory turnover reaching 5.65. This suggests that the company was able to sell and replace its inventory more than five times during that year, indicating a substantial enhancement in inventory management efficiency and potentially a more streamlined supply chain process.
Overall, the trend in inventory turnover indicates that Chart Industries Inc has been working on optimizing its inventory management practices, leading to increased efficiency and potentially better cash flow management.