International Business Machines (IBM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 27,560,000 | 27,842,000 | 25,865,000 | 24,314,000 | 26,181,000 |
| Inventory | US$ in thousands | 1,161,000 | 1,552,000 | 1,649,000 | 1,812,000 | 1,619,000 |
| Inventory turnover | 23.74 | 17.94 | 15.69 | 13.42 | 16.17 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $27,560,000K ÷ $1,161,000K
= 23.74
The inventory turnover of International Business Machines Corp. has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating the number of times a company sells and replaces its inventory during a specific period.
In 2023, the inventory turnover ratio was 23.74, indicating that IBM sold and replaced its inventory approximately 23.74 times during the year. This represents an improvement compared to the previous year, where the ratio was 17.94.
In 2022, the inventory turnover was 17.94, showing a decrease from the previous year's ratio of 20.69 in 2020. This suggests that IBM's inventory turnover slowed down in 2022 compared to previous years.
In 2021 and 2020, the inventory turnover ratios were 15.68 and 20.69, respectively, indicating fluctuations in inventory management efficiency during these years.
The highest inventory turnover ratio of 25.11 was recorded in 2019, indicating that IBM effectively managed its inventory during that year.
Overall, analyzing the inventory turnover ratios of IBM over the past five years, there have been fluctuations, suggesting varying levels of efficiency in managing inventory. This metric is important as it reflects how well the company is turning its inventory into sales and generating revenue from its products.
Peer comparison
Dec 31, 2023