Ingredion Incorporated (INGR)
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 | 6,481,000 | 6,591,000 | 6,618,000 | 6,649,000 | 6,513,000 | 6,368,000 | 6,142,000 | 5,887,000 | 6,003,000 | 5,811,000 | 5,582,000 | 5,271,000 | 4,872,000 | 5,166,000 | 5,108,000 | 5,131,000 | 5,004,000 | 3,395,000 | 3,404,000 | 3,433,000 |
| Inventory | US$ in thousands | 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 | 861,000 | 879,000 | 865,000 | 862,000 |
| Inventory turnover | 4.47 | 4.39 | 4.09 | 4.00 | 4.08 | 4.25 | 4.38 | 4.51 | 5.12 | 5.32 | 5.30 | 5.55 | 5.31 | 5.69 | 5.95 | 5.99 | 5.81 | 3.86 | 3.94 | 3.98 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,481,000K ÷ $1,450,000K
= 4.47
The inventory turnover ratio for Ingredion Inc has been relatively stable over the past eight quarters, ranging from a low of 3.96 in Q1 2023 to a high of 4.45 in Q1 2022. This ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.
A higher inventory turnover ratio generally indicates that a company is effectively managing its inventory levels and selling products quickly, which can be seen in Ingredion's performance over the quarters. The overall trend shows that the company has been able to maintain a healthy balance between stocking enough inventory to meet demand and avoiding excess stock that could lead to higher storage costs and obsolescence.
However, it's important to note that a consistently high inventory turnover ratio may also suggest that the company is missing out on sales opportunities due to understocking or facing supply chain issues that impact inventory availability. Furthermore, a declining inventory turnover ratio over time could indicate inefficiencies in inventory management or declining sales.
Overall, based on the data provided, Ingredion Inc appears to have a solid inventory turnover performance, demonstrating effective inventory management practices across the quarters.
Peer comparison
Dec 31, 2023
Dec 31, 2023