The Coca-Cola Company (KO)

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	18,520,000	18,399,000	18,308,000	18,226,000	18,000,000	17,575,000	16,986,000	15,943,000	15,357,000	14,847,000	14,341,000	13,567,000	13,433,000	13,421,000	13,717,000	14,625,000	14,619,000	14,155,000	13,734,000	13,356,000
Inventory	US$ in thousands	4,424,000	4,252,000	4,646,000	4,727,000	4,233,000	3,708,000	3,621,000	3,741,000	3,414,000	3,182,000	3,281,000	3,356,000	3,266,000	3,264,000	3,501,000	3,558,000	3,379,000	3,266,000	3,453,000	3,178,000
Inventory turnover		4.19	4.33	3.94	3.86	4.25	4.74	4.69	4.26	4.50	4.67	4.37	4.04	4.11	4.11	3.92	4.11	4.33	4.33	3.98	4.20

December 31, 2023 calculation

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

Coca-Cola Co's inventory turnover has experienced fluctuations over the past eight quarters. In Q4 2023, the inventory turnover was 4.19, slightly lower compared to the previous quarter's 4.33. This suggests that the company took approximately 4.19 times to sell and replace its inventory during the quarter.

The trend over the past year shows a general decline in inventory turnover, with the peak occurring in Q3 2022 at 4.74. This decrease may indicate potential issues such as slow-moving inventory, overstocking, or declining sales. However, it is important to note that inventory turnover can vary by industry and seasonality.

Overall, Coca-Cola Co should monitor its inventory levels closely to ensure efficient management and optimize working capital. A consistently low inventory turnover may tie up valuable resources and lead to increased holding costs. Conversely, a high turnover may indicate potential stockouts and lost sales opportunities. Further analysis in conjunction with other financial metrics is recommended to gain a comprehensive understanding of the company's operational efficiency and inventory management practices.