International Flavors & Fragrances Inc (IFF)

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	14,204,000	11,674,000	14,041,000	14,335,000	14,345,000	14,455,000	12,173,000	12,070,000	11,599,000	9,679,220	7,791,620	5,652,642	4,157,072	4,169,952	3,876,809	3,624,116	3,325,829	3,287,229	3,059,854	2,835,824
Inventory	US$ in thousands	2,477,000	2,549,000	2,790,000	2,946,000	3,151,000	3,122,000	2,993,000	2,795,000	2,516,000	2,401,000	2,464,000	2,589,000	1,132,000	1,151,280	1,165,860	1,075,910	1,123,070	1,126,390	1,163,650	1,114,490
Inventory turnover		5.73	4.58	5.03	4.87	4.55	4.63	4.07	4.32	4.61	4.03	3.16	2.18	3.67	3.62	3.33	3.37	2.96	2.92	2.63	2.54

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,204,000K ÷ $2,477,000K
= 5.73

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by assessing how many times its inventory is sold or replaced over a specific period. For International Flavors & Fragrances Inc., the inventory turnover has fluctuated over the past eight quarters, ranging from a low of 2.63 in Q4 2022 to a high of 3.15 in Q4 2023.

A higher inventory turnover indicates that the company is selling its products quickly, which can be a positive sign of efficiency and effective inventory management. Conversely, a lower turnover may indicate slower sales or potential issues with inventory control.

In analyzing International Flavors & Fragrances Inc.'s inventory turnover trend, we observe an overall upward trajectory from Q1 2022 to Q4 2023. This suggests improvements in inventory management over time, as the company has been able to sell and replace its inventory at a quicker pace.

However, it is important to consider industry benchmarks and compare the company's inventory turnover with its competitors to gain a more comprehensive understanding of its performance in this area. Additionally, further analysis of the company's sales growth, production efficiency, and supply chain management practices could provide additional insights into the factors influencing its inventory turnover ratios.