Keurig Dr Pepper Inc (KDP)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	13,122,000	12,143,000	12,315,000	10,502,000	9,835,000
Inventory	US$ in thousands	1,299,000	1,142,000	1,314,000	894,000	762,000
Inventory turnover		10.10	10.63	9.37	11.75	12.91

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $13,122,000K ÷ $1,299,000K
= 10.10

Keurig Dr Pepper Inc's inventory turnover ratio has experienced fluctuations over the past five years. The trend indicates a decline from 12.91 in 2020 to 10.10 in 2024. Although there was a notable peak in 2020, the subsequent years show a decrease, suggesting that the company took longer to sell its inventory. A lower inventory turnover ratio may indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in the sales process. Management should monitor and address this trend to ensure optimal inventory management and operational efficiency.