Linde plc Ordinary Shares (LIN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 17,143,000 | 17,492,000 | 19,450,000 | 17,543,000 | 15,383,000 |
| Inventory | US$ in thousands | 1,946,000 | 2,115,000 | 1,978,000 | 1,733,000 | 1,729,000 |
| Inventory turnover | 8.81 | 8.27 | 9.83 | 10.12 | 8.90 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $17,143,000K ÷ $1,946,000K
= 8.81
Linde plc's inventory turnover over the past five years has shown some fluctuations. The inventory turnover ratio, which measures how many times a company sells and replaces its inventory during a specific period, increased from 8.90 in December 2020 to 10.12 in December 2021. This suggests that Linde plc was selling its inventory more efficiently in 2021 compared to 2020.
However, in December 2022, the inventory turnover ratio slightly decreased to 9.83, indicating a small drop in efficiency in managing its inventory compared to the previous year. The trend continued in December 2023, with the ratio further declining to 8.27, suggesting that Linde plc may have had some challenges in inventory management during that period.
By December 2024, the inventory turnover ratio improved slightly to 8.81, although it remained below the levels seen in 2021 and 2022. This indicates that Linde plc was able to enhance its inventory management practices, but there may still be room for improvement to reach the efficiency levels seen in 2021.
Overall, it is essential for Linde plc to monitor its inventory turnover ratio consistently to ensure optimal inventory management and streamline its operations for better financial performance.
Peer comparison
Dec 31, 2024