Ingredion Incorporated (INGR)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,503,000 | 5,673,000 | 5,894,000 | 6,151,000 | 6,411,000 | 6,526,000 | 6,563,000 | 6,589,000 | 6,452,000 | 6,281,000 | 6,072,000 | 5,813,000 | 5,563,000 | 5,339,000 | 5,075,000 | 4,758,000 | 4,715,000 | 4,700,000 | 4,754,000 | 4,897,000 |
| Inventory | US$ in thousands | 1,187,000 | 1,234,000 | 1,244,000 | 1,344,000 | 1,450,000 | 1,502,000 | 1,618,000 | 1,663,000 | 1,597,000 | 1,500,000 | 1,403,000 | 1,306,000 | 1,172,000 | 1,093,000 | 1,054,000 | 950,000 | 917,000 | 908,000 | 859,000 | 857,000 |
| Inventory turnover | 4.64 | 4.60 | 4.74 | 4.58 | 4.42 | 4.34 | 4.06 | 3.96 | 4.04 | 4.19 | 4.33 | 4.45 | 4.75 | 4.88 | 4.81 | 5.01 | 5.14 | 5.18 | 5.53 | 5.71 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,503,000K ÷ $1,187,000K
= 4.64
The inventory turnover ratio for Ingredion Incorporated has shown a declining trend over the past few years, indicating a decrease in the company's efficiency in managing its inventory. The ratio decreased from 5.71 on March 31, 2020, to 4.64 on December 31, 2024.
A decreasing inventory turnover ratio suggests that the company is holding onto its inventory for a longer period, which could tie up capital and lead to potential obsolescence risks. This may also indicate ineffective inventory management practices or challenges in accurately forecasting demand for its products.
It is essential for Ingredion Incorporated to closely monitor and improve its inventory turnover ratio to ensure optimal utilization of its resources, minimize carrying costs, and enhance overall operational efficiency. By implementing more effective inventory management strategies, the company can potentially improve its liquidity position and profitability in the long run.
Peer comparison
Dec 31, 2024
Dec 31, 2024