ODP Corp (ODP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,545,000 | 6,070,000 | 6,643,000 | 6,602,000 | 7,578,000 |
| Inventory | US$ in thousands | 770,000 | 765,000 | 828,000 | 859,000 | 930,000 |
| Inventory turnover | 7.20 | 7.93 | 8.02 | 7.69 | 8.15 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,545,000K ÷ $770,000K
= 7.20
The inventory turnover ratio of ODP Corp has been relatively stable over the past five years. It decreased from 8.15 in December 2020 to 7.69 in December 2021, before slightly increasing to 8.02 in December 2022. However, in the following years, the ratio experienced some fluctuations, settling at 7.93 in December 2023 and dropping to 7.20 by December 2024.
A high inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels and quickly converting them into sales. On the other hand, a decreasing ratio may suggest slowing sales or overstocking of inventory. Therefore, while ODP Corp's inventory turnover ratios have varied, further analysis is needed to understand the underlying reasons and implications of these fluctuations.
Peer comparison
Dec 31, 2024