WW Grainger Inc (GWW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,410,000 | 9,982,000 | 9,379,000 | 8,302,000 | 7,559,000 |
| Inventory | US$ in thousands | 2,306,000 | 2,266,000 | 2,253,000 | 1,870,000 | 1,733,000 |
| Inventory turnover | 4.51 | 4.41 | 4.16 | 4.44 | 4.36 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,410,000K ÷ $2,306,000K
= 4.51
Based on the data provided, WW Grainger Inc's inventory turnover has shown a relatively stable trend over the past five years. The inventory turnover ratio measures the number of times a company sells and replaces its inventory within a specific period.
In 2020, the inventory turnover ratio was 4.36, indicating that the company turned over its inventory approximately 4.36 times during that year. This ratio increased slightly to 4.44 in 2021, suggesting a slightly more efficient management of inventory in that year.
However, in 2022, the inventory turnover ratio decreased to 4.16, which may indicate a slowdown in the company's inventory management efficiency. The ratio then improved in 2023 to 4.41 and further increased to 4.51 in 2024, suggesting that the company was able to sell and replace its inventory at a faster rate in those years.
Overall, WW Grainger Inc's inventory turnover ratio has shown some fluctuation but has generally remained within a relatively narrow range over the past five years. It is important for the company to monitor and manage its inventory effectively to ensure optimal use of resources and profitability.