Chart Industries Inc (GTLS)
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 | 3,037,800 | 2,585,600 | 2,156,900 | 1,714,500 | 1,518,100 | 1,463,900 | 1,411,400 | 1,332,700 | 1,259,200 | 1,186,000 | 1,116,500 | 1,102,400 | 1,144,100 | 1,182,800 | 1,265,200 | 1,271,300 | 1,260,400 | 1,190,700 | 1,106,000 | 1,115,100 |
| Inventory | US$ in thousands | 576,300 | 613,300 | 634,600 | 601,800 | 357,900 | 357,500 | 363,000 | 350,600 | 321,500 | 341,100 | 310,100 | 279,900 | 248,400 | 237,600 | 248,600 | 235,400 | 210,000 | 234,900 | 228,800 | 234,700 |
| Inventory turnover | 5.27 | 4.22 | 3.40 | 2.85 | 4.24 | 4.09 | 3.89 | 3.80 | 3.92 | 3.48 | 3.60 | 3.94 | 4.61 | 4.98 | 5.09 | 5.40 | 6.00 | 5.07 | 4.83 | 4.75 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,037,800K ÷ $576,300K
= 5.27
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. It indicates the number of times a company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio generally indicates better inventory management.
Looking at the inventory turnover ratio for Chart Industries Inc over the last eight quarters, we observe fluctuations in the ratio. In Q4 2023, the inventory turnover ratio was 4.01, showing an improvement compared to the previous quarters. This suggests that the company's inventory was sold and replaced more frequently during the period.
It's important to note that a high inventory turnover ratio may imply strong demand for the company's products, effective inventory management practices, and efficient operations. Conversely, a low inventory turnover ratio could indicate slower sales, excess inventory, or ineffective inventory management.
Therefore, based on the trend in the inventory turnover ratios provided, it appears that Chart Industries Inc has been improving its inventory turnover efficiency in recent quarters, which could potentially lead to better working capital management and increased profitability. Nonetheless, further analysis and consideration of industry benchmarks are necessary to fully assess the effectiveness of the company's inventory management strategies.