The Coca-Cola Company (KO)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	18,520,000	18,000,000	15,357,000	13,433,000	14,619,000
Inventory	US$ in thousands	4,424,000	4,233,000	3,414,000	3,266,000	3,379,000
Inventory turnover		4.19	4.25	4.50	4.11	4.33

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $18,520,000K ÷ $4,424,000K
= 4.19

The inventory turnover ratio for Coca-Cola Co has shown some fluctuations over the past five years. In 2023, the inventory turnover ratio was 4.19, slightly lower than the previous year's ratio of 4.25. However, it is important to note that the ratio remained relatively stable, indicating a consistent efficiency in managing inventory levels and sales.

When compared to 2021, where the ratio was 4.50, there was a slight decrease in 2023. This decrease suggests that Coca-Cola Co may have experienced a slightly longer period to sell through its inventory in 2023 compared to the previous year. Nonetheless, the company's ability to turn its inventory over more than 4 times a year demonstrates an effective management of inventory levels.

Looking back at the ratios from 2020 and 2019, which were 4.11 and 4.33 respectively, it is evident that the inventory turnover ratio has varied over the years. Despite these fluctuations, the company has generally maintained a healthy inventory turnover ratio, indicating efficient inventory management practices.

Overall, the inventory turnover ratios for Coca-Cola Co suggest that the company has been successful in efficiently managing its inventory and converting it into sales over the years, albeit with some minor variations. This consistent performance is indicative of the company's ability to effectively control its inventory levels and meet consumer demand.