International Business Machines (IBM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 27,201,000 | 27,560,000 | 27,842,000 | 25,865,000 | 24,314,000 |
| Inventory | US$ in thousands | 1,289,000 | 1,161,000 | 1,552,000 | 1,649,000 | 1,812,000 |
| Inventory turnover | 21.10 | 23.74 | 17.94 | 15.69 | 13.42 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $27,201,000K ÷ $1,289,000K
= 21.10
The inventory turnover ratio for International Business Machines has shown an increasing trend over the years, indicating an improvement in the efficiency of managing its inventory.
The ratio increased from 13.42 in December 31, 2020, to 15.69 in December 31, 2021, further rising to 17.94 in December 31, 2022. Subsequently, there was a significant increase to 23.74 in December 31, 2023, showcasing a notable enhancement in inventory management.
However, in December 31, 2024, the inventory turnover ratio decreased slightly to 21.10, but it still remained at a level indicative of efficient inventory management.
Overall, the consistent increase in inventory turnover ratios demonstrates that IBM has been effectively managing its inventory levels and turning over its inventory at a more rapid pace in recent years, which is a positive indicator for the company's operational efficiency.
Peer comparison
Dec 31, 2024