Insight Enterprises Inc (NSIT)
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 | 8,792,280 | 9,073,810 | 9,343,800 | 9,726,250 | 10,050,380 | 10,134,260 | 10,053,560 | 9,580,940 | 9,136,090 | 8,863,810 | 8,375,880 | 8,131,340 | 8,098,560 | 8,120,430 | 8,110,070 | 7,973,230 | 7,504,180 | 6,964,430 | 6,792,320 | 6,790,690 |
| Inventory | US$ in thousands | 184,605 | 184,200 | 248,188 | 265,570 | 265,154 | 367,913 | 377,059 | 383,401 | 328,101 | 269,471 | 214,385 | 253,297 | 185,650 | 158,400 | 212,980 | 236,414 | 190,833 | 219,932 | 179,577 | 187,146 |
| Inventory turnover | 47.63 | 49.26 | 37.65 | 36.62 | 37.90 | 27.55 | 26.66 | 24.99 | 27.85 | 32.89 | 39.07 | 32.10 | 43.62 | 51.27 | 38.08 | 33.73 | 39.32 | 31.67 | 37.82 | 36.29 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,792,280K ÷ $184,605K
= 47.63
Insight Enterprises Inc. has shown a consistent improvement in its inventory turnover ratio over the past eight quarters. The inventory turnover ratio indicates how many times a company sells and replaces its inventory within a specific period.
The increasing trend in the inventory turnover ratio from Q1 2022 to Q4 2023 reflects the company's effective management of its inventory levels. The ratio increased from 21.91 in Q1 2022 to 40.66 in Q4 2023, indicating that Insight Enterprises Inc. has been able to sell and replace its inventory at a faster rate.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory levels, which can lead to lower carrying costs and reduced risk of obsolete inventory. Insight Enterprises Inc.'s consistent improvement in inventory turnover suggests that the company has been successful in optimizing its inventory management processes over the analyzed period.
Peer comparison
Dec 31, 2023
Dec 31, 2023