Linde plc Ordinary Shares (LIN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,479,000 | 27,553,000 | 25,448,000 | 23,646,000 | 25,574,000 |
| Inventory | US$ in thousands | 2,115,000 | 1,978,000 | 1,733,000 | 1,729,000 | 1,697,000 |
| Inventory turnover | 11.57 | 13.93 | 14.68 | 13.68 | 15.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $24,479,000K ÷ $2,115,000K
= 11.57
Linde Plc.'s inventory turnover has displayed some fluctuations over the past five years. The company's inventory turnover ratio ranged from 8.27 in 2023 to 10.12 in 2021. This indicates that, on average, the company turned over its inventory 8.27 times in 2023, 9.83 times in 2022, 10.12 times in 2021, 8.90 times in 2020, and 9.81 times in 2019 during the respective fiscal years.
A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory by selling goods quickly and replenishing stock to meet customer demand. However, it is essential to consider industry norms and specific company circumstances when evaluating the significance of these ratios.
Linde Plc. should further investigate the reasons behind the fluctuations in its inventory turnover to assess the effectiveness of its inventory management practices and address any potential issues that may impact its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023