International Business Machines (IBM)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 27,495,000 | 27,110,000 | 27,536,000 | 27,560,000 | 27,504,000 | 27,452,000 | 27,724,000 | 27,843,000 | 27,980,000 | 27,448,000 | 26,568,000 | 25,866,000 | 14,783,000 | 17,768,000 | 20,825,000 | 24,314,000 | 24,401,000 | 24,963,000 | 25,691,000 | 26,181,000 |
| Inventory | US$ in thousands | 1,289,000 | 1,367,000 | 1,212,000 | 1,161,000 | 1,399,000 | 1,501,000 | 1,603,000 | 1,552,000 | 1,794,000 | 1,684,000 | 1,776,000 | 1,649,000 | 1,891,000 | 1,807,000 | 1,828,000 | 1,812,000 | 1,949,000 | 1,869,000 | 1,786,000 | 1,619,000 |
| Inventory turnover | 21.33 | 19.83 | 22.72 | 23.74 | 19.66 | 18.29 | 17.30 | 17.94 | 15.60 | 16.30 | 14.96 | 15.69 | 7.82 | 9.83 | 11.39 | 13.42 | 12.52 | 13.36 | 14.38 | 16.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $27,495,000K ÷ $1,289,000K
= 21.33
The inventory turnover for International Business Machines has shown fluctuations over the period from December 31, 2019, to December 31, 2024. The inventory turnover ratio indicates how efficiently a company manages its inventory by calculating how many times it sells and replaces its inventory during a specific period.
From December 2019 to June 2021, IBM’s inventory turnover decreased steadily from 16.17 to 9.83. This decline may suggest either slowing sales or excess inventory levels, which could potentially lead to increased holding costs or obsolete inventory issues.
However, from December 2021 to December 2024, there was a significant improvement in the inventory turnover, increasing from 15.69 to 21.33. This surge could indicate higher sales volume, streamlined inventory management processes, or successful inventory clearance efforts.
Overall, despite the fluctuations, it is essential to monitor how IBM manages its inventory effectively to maintain a balance between inventory levels and sales demand, ultimately impacting the company's financial performance and profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
International Business Machines Inventory Turnover (Quarterly Data)