Lennox International Inc (LII)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,434,100 | 3,433,700 | 3,005,700 | 2,594,000 | 2,727,400 |
| Inventory | US$ in thousands | 699,100 | 753,000 | 510,900 | 439,400 | 544,100 |
| Inventory turnover | 4.91 | 4.56 | 5.88 | 5.90 | 5.01 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,434,100K ÷ $699,100K
= 4.91
The inventory turnover ratio of Lennox International Inc has shown some fluctuation over the past five years. In 2023, the inventory turnover ratio was 4.91, which indicates that the company's inventory was sold and replaced approximately 4.91 times during the year. This is an improvement compared to 2022 where the ratio was 4.56. However, it is lower than the ratios in 2021 and 2020, which were 5.88 and 5.90, respectively. In 2019, the inventory turnover ratio was 5.01.
Overall, the trend in the inventory turnover ratio for Lennox International Inc has been relatively stable over the past five years, with some minor fluctuations. A higher inventory turnover ratio generally indicates a more efficient management of inventory and a faster sales cycle. It is important for the company to monitor and potentially improve this ratio to ensure optimal inventory management and operational efficiency.
Peer comparison
Dec 31, 2023