Mercer International Inc (MERC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,186,430 | 1,907,320 | 1,468,920 | 1,368,790 | 1,550,110 |
| Inventory | US$ in thousands | 414,161 | 450,470 | 356,731 | 271,696 | 272,599 |
| Inventory turnover | 5.28 | 4.23 | 4.12 | 5.04 | 5.69 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,186,430K ÷ $414,161K
= 5.28
Mercer International Inc. has shown some fluctuations in its inventory turnover ratio over the past five years. The inventory turnover ratios for the years ending December 31, 2023, and December 31, 2022, were 4.48 and 3.64, respectively. This indicates that the company's efficiency in managing its inventory improved in 2023 compared to the previous year.
However, the inventory turnover ratio for 2023 was still lower than the ratios for 2019 and 2020, which were 4.92 and 4.28, respectively. This suggests that Mercer International Inc. may have been less effective in converting its inventory into sales in 2023 compared to those earlier years.
Overall, Mercer International Inc.'s inventory turnover ratios have displayed some variability in recent years, highlighting the importance of closely monitoring and managing inventory levels to optimize operational efficiency and financial performance.