Ingersoll Rand Inc (IR)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 4,065,000 3,993,900 3,590,700 3,163,900 2,568,300
Inventory US$ in thousands 1,055,000 1,001,100 1,025,400 854,200 716,700
Inventory turnover 3.85 3.99 3.50 3.70 3.58

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,065,000K ÷ $1,055,000K
= 3.85

Ingersoll Rand Inc's inventory turnover has shown some variability over the years. The inventory turnover ratio increased from 3.58 in December 31, 2020, to 3.70 in December 31, 2021, indicating that the company may have managed its inventory more efficiently during that period.

However, there was a slight decrease in inventory turnover to 3.50 in December 31, 2022, which could suggest that the company's inventory management may have been less effective during that year.

The subsequent years saw improvements in the inventory turnover ratio, with significant increases to 3.99 in December 31, 2023, and 3.85 in December 31, 2024. These higher ratios indicate that Ingersoll Rand Inc has been able to sell its inventory more quickly in those years, which is a positive indicator of operational efficiency and effective inventory management.

Overall, Ingersoll Rand Inc's inventory turnover has generally been stable, with fluctuations seen over the years. It is essential for the company to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and maintain healthy operational performance.