The Coca-Cola Company (KO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,324,000 | 18,520,000 | 18,000,000 | 15,357,000 | 13,433,000 |
| Inventory | US$ in thousands | 4,728,000 | 4,424,000 | 4,233,000 | 3,414,000 | 3,266,000 |
| Inventory turnover | 3.88 | 4.19 | 4.25 | 4.50 | 4.11 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,324,000K ÷ $4,728,000K
= 3.88
The inventory turnover ratio for The Coca-Cola Company has shown variations over the past five years. In 2020, the ratio was 4.11 times, indicating that the company turned over its inventory approximately 4.11 times during the year. It then increased to 4.50 in 2021, suggesting a more efficient management of inventory. However, in 2022, the ratio decreased slightly to 4.25, followed by a further dip to 4.19 in 2023. The most recent data for 2024 shows a decline to 3.88, indicating a potential slowdown in inventory turnover.
Overall, although the company's inventory turnover has fluctuated, it has remained relatively stable within the range of 3.88 to 4.50 times over the past five years. A higher inventory turnover ratio typically signifies efficient inventory management, as it indicates that the company is selling its products quickly. However, a declining trend in the ratio may suggest potential issues such as excess inventory levels or challenges in sales. Further analysis of the company's operations and market conditions would be necessary to understand the drivers behind these fluctuations in inventory turnover.
Peer comparison
Dec 31, 2024