Linde plc Ordinary Shares (LIN)
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 | 24,479,000 | 24,428,000 | 25,436,000 | 27,083,000 | 27,553,000 | 28,296,000 | 26,374,000 | 23,812,000 | 23,118,000 | 22,494,000 | 21,960,000 | 21,372,000 | 21,354,000 | 20,482,000 | 21,073,000 | 21,836,000 | 18,021,000 | 13,568,000 | 8,671,000 | 3,632,000 |
| Inventory | US$ in thousands | 2,115,000 | 2,078,000 | 2,079,000 | 2,054,000 | 1,978,000 | 1,855,000 | 1,786,000 | 1,766,000 | 1,733,000 | 1,694,000 | 1,692,000 | 1,695,000 | 1,729,000 | 1,733,000 | 1,715,000 | 1,689,000 | 1,697,000 | 1,653,000 | 1,708,000 | 1,667,000 |
| Inventory turnover | 11.57 | 11.76 | 12.23 | 13.19 | 13.93 | 15.25 | 14.77 | 13.48 | 13.34 | 13.28 | 12.98 | 12.61 | 12.35 | 11.82 | 12.29 | 12.93 | 10.62 | 8.21 | 5.08 | 2.18 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $24,479,000K ÷ $2,115,000K
= 11.57
Linde Plc.'s inventory turnover has been showing a declining trend over the past few quarters, indicating that the company is taking longer to sell its inventory. The inventory turnover ratio measures how efficiently a company is managing its inventory by showing how many times inventory is sold and replaced over a specific period.
The decreasing trend in the inventory turnover ratio could suggest potential issues such as overstocking, slow-moving inventory, or pricing concerns. A lower inventory turnover may lead to higher carrying costs, increased risk of obsolescence, and reduced liquidity.
It is important for Linde Plc. to closely monitor its inventory management practices to optimize its working capital and maximize profitability. The company may need to reassess its inventory levels, streamline its supply chain processes, improve demand forecasting, or reevaluate its product pricing strategy to improve its inventory turnover ratio and operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023
See also:
Linde plc Ordinary Shares Inventory Turnover (Quarterly Data)