Keurig Dr Pepper Inc (KDP)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	12,982,000	12,083,000	11,989,000	11,952,000	12,020,000	12,260,000	12,572,000	12,535,000	12,202,000	11,930,000	11,154,000	10,579,000	10,395,000	9,752,000	9,597,000	9,536,000	9,513,000	9,345,000	9,371,000	9,258,000
Inventory	US$ in thousands	1,299,000	1,351,000	1,252,000	1,204,000	1,142,000	1,348,000	1,384,000	1,391,000	1,314,000	1,438,000	1,239,000	1,045,000	894,000	972,000	897,000	841,000	762,000	824,000	747,000	682,000
Inventory turnover		9.99	8.94	9.58	9.93	10.53	9.09	9.08	9.01	9.29	8.30	9.00	10.12	11.63	10.03	10.70	11.34	12.48	11.34	12.54	13.57

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,982,000K ÷ $1,299,000K
= 9.99

Inventory turnover measures how efficiently a company manages its inventory by showing the number of times during a period that the inventory is sold and replaced. For Keurig Dr Pepper Inc, the trend in inventory turnover is as follows:

- The inventory turnover decreased from 13.57 on March 31, 2020, to 8.30 on September 30, 2022, showing a declining trend, indicating the company taking longer to sell its inventory.
- Despite some fluctuations, the inventory turnover remained relatively stable between 8.30 and 10.53 from September 2022 to December 2023.
- The inventory turnover improved slightly to 9.99 on December 31, 2024, compared to the low point seen in September 2024, suggesting a potential improvement in inventory management efficiency.

Overall, Keurig Dr Pepper Inc's inventory turnover has experienced fluctuations over the years, with some periods showing a decrease in efficiency in managing inventory levels. The company may need to focus on optimizing its inventory management strategies to improve turnover ratios and enhance its overall operational efficiency.