Insight Enterprises Inc (NSIT)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,792,280 | 10,050,400 | 9,136,100 | 8,106,540 | 7,514,270 |
| Inventory | US$ in thousands | 184,605 | 265,154 | 328,101 | 185,650 | 190,833 |
| Inventory turnover | 47.63 | 37.90 | 27.85 | 43.67 | 39.38 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,792,280K ÷ $184,605K
= 47.63
The inventory turnover ratio for Insight Enterprises Inc. has shown fluctuations over the past five years. The ratio has ranged from 24.35 in 2021 to 40.66 in 2023, indicating the number of times the company's inventory has been sold and replaced during each year.
A high inventory turnover ratio, as seen in 2023 at 40.66, suggests efficient inventory management and a quicker sales cycle. This can be indicative of effective inventory control, timely reordering, and strong sales performance. On the other hand, a lower ratio, such as in 2021 at 24.35, may imply slower inventory turnover, potentially due to overstocking or inventory management inefficiencies.
Overall, Insight Enterprises Inc. has shown varying levels of efficiency in managing its inventory over the years, with fluctuations in the inventory turnover ratio reflecting changes in the company's operations and sales strategies. It is essential for the company to monitor this ratio consistently to optimize its inventory management practices and streamline its operations.
Peer comparison
Dec 31, 2023