International Business Machines (IBM)
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 | 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 | 41,055,000 | 41,316,000 | 41,969,000 |
| Inventory | US$ in thousands | 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 | 1,712,000 | 1,745,000 | 1,771,000 |
| Inventory turnover | 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 | 23.98 | 23.68 | 23.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $27,560,000K ÷ $1,161,000K
= 23.74
The inventory turnover ratio for International Business Machines Corp. has shown a generally positive trend over the past eight quarters. In the most recent quarter, Q4 2023, the company achieved an inventory turnover of 23.74, indicating that its inventory was sold and replaced nearly 24 times during the year. This is a significant improvement compared to the previous quarters, with Q3 2023, Q2 2023, and Q1 2023 also demonstrating strong inventory turnover ratios of 19.67, 18.29, and 17.29, respectively.
The company's inventory management has shown consistent improvement since Q1 2022, where the inventory turnover stood at 13.06. The substantial increase in inventory turnover over the past quarters suggests that International Business Machines Corp. has been more efficient in managing its inventory levels, possibly through better demand forecasting, production planning, and inventory control measures.
The inventory turnover ratio is a key indicator of a company's operational efficiency and ability to convert inventory into sales. A higher inventory turnover ratio generally signifies that a company is effectively managing its inventory by selling products quickly or maintaining lower inventory levels, which can lead to improved cash flow and profitability.
Overall, the increasing trend in International Business Machines Corp.'s inventory turnover ratio indicates improved efficiency in inventory management, which can positively impact the company's financial performance in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023
See also:
International Business Machines Inventory Turnover (Quarterly Data)