Innospec Inc (IOSP)
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 | 1,759,700 | 1,765,200 | 1,807,400 | 1,783,000 | 1,744,300 | 1,660,500 | 1,542,100 | 1,439,800 | 1,324,200 | 1,237,700 | 1,143,900 | 1,125,200 | 1,147,400 | 1,204,000 | 1,293,500 | 1,331,600 | 1,351,700 | 1,356,800 | 1,355,100 | 1,354,800 |
| Inventory | US$ in thousands | 300,100 | 331,500 | 356,700 | 365,700 | 373,100 | 381,800 | 362,200 | 308,200 | 277,600 | 274,100 | 250,500 | 223,100 | 220,000 | 239,800 | 243,600 | 246,000 | 244,600 | 251,400 | 248,200 | 249,100 |
| Inventory turnover | 5.86 | 5.32 | 5.07 | 4.88 | 4.68 | 4.35 | 4.26 | 4.67 | 4.77 | 4.52 | 4.57 | 5.04 | 5.22 | 5.02 | 5.31 | 5.41 | 5.53 | 5.40 | 5.46 | 5.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,759,700K ÷ $300,100K
= 5.86
The inventory turnover ratio for Innospec Inc has shown a generally increasing trend over the past eight quarters, indicating that the company is managing its inventory more efficiently. The ratio has improved from 3.38 in Q2 2022 to 4.52 in Q4 2023, reaching its peak in the most recent quarter.
A higher inventory turnover ratio suggests that Innospec is selling its inventory more quickly, which can lead to lower carrying costs and potential for increased profitability. This may be indicative of effective inventory management practices and strong demand for the company's products.
Overall, the improving trend in inventory turnover for Innospec Inc signals operational efficiency and effective inventory management, which can positively impact the company's financial performance and overall competitiveness in the market.
Peer comparison
Dec 31, 2023
Dec 31, 2023