Insight Enterprises Inc (NSIT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,935,680 | 7,506,320 | 8,794,620 | 7,988,560 | 7,040,640 |
| Inventory | US$ in thousands | 122,581 | 184,605 | 265,154 | 328,101 | 185,650 |
| Inventory turnover | 56.58 | 40.66 | 33.17 | 24.35 | 37.92 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,935,680K ÷ $122,581K
= 56.58
Insight Enterprises Inc's inventory turnover has demonstrated fluctuations over the past five years, with values ranging from 24.35 to 56.58. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.
A higher inventory turnover ratio generally implies more efficient inventory management and greater liquidity, as the company is selling its inventory quickly. In this case, Insight's inventory turnover has generally been on an upward trend over the five-year period, indicating improvement in the efficiency of its inventory management.
The peak inventory turnover of 56.58 by the end of December 31, 2024, suggests that Insight Enterprises Inc was able to sell and replace its inventory more than 56 times during that year. This may signify effective inventory control, quick sales, and minimal holding costs.
However, it's important to consider industry norms and company-specific factors when interpreting inventory turnover ratios. A very high inventory turnover ratio could also indicate potential stockouts or lost sales due to understocking.
In conclusion, Insight Enterprises Inc's inventory turnover has shown an overall positive trend over the past five years, which could indicate improved inventory management efficiency and potentially positive financial implications for the company.
Peer comparison
Dec 31, 2024