Keurig Dr Pepper Inc (KDP)

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	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	9,114,000	9,116,000	9,311,000	8,564,000
Inventory	US$ in thousands	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	654,000	751,000	686,000	663,000
Inventory turnover		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	13.94	12.14	13.57	12.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,020,000K ÷ $1,142,000K
= 10.53

Keurig Dr Pepper Inc's inventory turnover has displayed variability over the past eight quarters. The ratio ranged from a low of 4.55 in Q3 2022 to a high of 5.90 in Q4 2023. The overall trend suggests that the company is effectively managing its inventory levels to generate sales, with an average turnover ratio of approximately 5.18 during this period. A higher inventory turnover ratio indicates that the company is efficiently selling its inventory and replenishing it quickly. This may be attributed to effective inventory management practices, strong demand for its products, or efficient supply chain operations. It is essential to continue monitoring this ratio to ensure optimal inventory management and operational efficiency.