Linde plc Ordinary Shares (LIN)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 19,061,000 | 19,172,000 | 18,170,000 | 17,277,000 | 17,492,000 | 17,488,000 | 18,459,000 | 19,083,000 | 19,450,000 | 19,950,000 | 19,033,000 | 18,287,000 | 17,543,000 | 16,702,000 | 16,169,000 | 15,594,000 | 15,383,000 | 15,484,000 | 15,710,000 | 16,371,000 |
| Inventory | US$ in thousands | 1,946,000 | 2,087,000 | 2,094,000 | 2,100,000 | 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 |
| Inventory turnover | 9.79 | 9.19 | 8.68 | 8.23 | 8.27 | 8.42 | 8.88 | 9.29 | 9.83 | 10.75 | 10.66 | 10.36 | 10.12 | 9.86 | 9.56 | 9.20 | 8.90 | 8.93 | 9.16 | 9.69 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,061,000K ÷ $1,946,000K
= 9.79
Inventory turnover ratio measures how efficiently a company manages its inventory by calculating the number of times it sells and replaces its inventory over a specific period. A higher inventory turnover ratio indicates that the company is selling goods quickly and efficiently, while a lower ratio suggests inefficiency or overstocking.
Based on the data provided for Linde plc Ordinary Shares, we observe a fluctuating trend in inventory turnover over the periods analyzed. The ratio ranged from 8.27 to 10.75 during the time frame from March 31, 2020, to December 31, 2024.
Initially, the inventory turnover ratio increased steadily from 9.69 on March 31, 2020, to 10.75 on September 30, 2022. This upward trend indicates that the company was efficiently managing and moving its inventory during this period.
However, from December 31, 2022, to March 31, 2024, there was a decline in the inventory turnover ratio, falling back to a range between 8.23 and 9.79. A decreasing inventory turnover ratio could suggest potential issues such as overstocking, slowing sales, or inefficiencies in inventory management.
Overall, it is essential for Linde plc to analyze the reasons behind the fluctuations in its inventory turnover ratio to identify opportunities for improvement in inventory management practices. By addressing any underlying issues affecting inventory turnover, the company can strive to enhance operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Linde plc Ordinary Shares Inventory Turnover (Quarterly Data)