Innospec Inc (IOSP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,784,700 | 1,765,000 | 1,751,700 | 1,332,200 | 1,159,900 |
| Inventory | US$ in thousands | 301,000 | 300,100 | 373,100 | 277,600 | 220,000 |
| Inventory turnover | 5.93 | 5.88 | 4.69 | 4.80 | 5.27 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,784,700K ÷ $301,000K
= 5.93
The inventory turnover for Innospec Inc has shown fluctuations over the years. In 2020, the inventory turnover was 5.27, indicating that the company sold and replaced its inventory approximately 5.27 times during that year. Over the following years, the turnover rate decreased slightly to 4.80 in 2021 and 4.69 in 2022, suggesting potential issues with managing inventory efficiently.
However, there was a significant improvement in inventory turnover in 2023 and 2024, with ratios of 5.88 and 5.93 respectively. This increase indicates that the company was able to sell its inventory at a faster rate compared to the previous years, which could lead to better cash flow and reduced risk of inventory obsolescence.
Overall, it is important for Innospec Inc to continue monitoring and optimizing its inventory turnover to ensure effective inventory management and maximization of sales potential.
Peer comparison
Dec 31, 2024