Chart Industries Inc (GTLS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,069,700 | 1,537,700 | 1,279,800 | 1,138,300 | 1,278,500 |
| Inventory | US$ in thousands | 576,300 | 357,900 | 321,500 | 248,400 | 210,000 |
| Inventory turnover | 5.33 | 4.30 | 3.98 | 4.58 | 6.09 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,069,700K ÷ $576,300K
= 5.33
Chart Industries Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how effectively the company is managing its inventory by indicating how many times the inventory is sold and replaced within a specific period.
In 2023, the inventory turnover ratio improved to 4.01, indicating that the company sold and replaced its inventory approximately 4.01 times during the year. This increase suggests that the company's inventory management has become more efficient compared to the previous year.
In 2022, the inventory turnover ratio was 3.37, showing a slight decrease from the previous year. This could indicate that the company's inventory turnover slowed down slightly, and inventory may have been held for a longer period before being sold and replaced.
In 2021, the ratio was 3.09, which was lower compared to 2020. This decrease may suggest that the company experienced challenges in managing its inventory effectively during that period.
In 2020, the inventory turnover ratio was 3.40, showing a moderate decrease from the previous year. This could imply that the company faced some issues in inventory turnover efficiency compared to 2019 when the ratio was higher.
In 2019, the inventory turnover ratio was 4.39, indicating that the company sold and replaced its inventory more frequently compared to the following years analyzed. This implies that the company was managing its inventory effectively and efficiently during that year.
Overall, the trend in the inventory turnover ratio for Chart Industries Inc fluctuated over the past five years, with some improvements and declines. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management performance.