ODP Corp (ODP)
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 | 3,856,000 | 3,790,000 | 3,953,000 | 4,074,000 | 6,206,000 | 6,202,000 | 6,187,000 | 6,554,000 | 6,768,000 | 6,774,000 | 7,132,000 | 7,384,000 | 7,720,000 | 7,718,000 | 7,955,000 | 7,935,000 | 8,036,000 | 8,062,000 | 8,172,000 | 8,158,000 |
| Inventory | US$ in thousands | 765,000 | 782,000 | 836,000 | 793,000 | 828,000 | 890,000 | 968,000 | 866,000 | 859,000 | 841,000 | 957,000 | 929,000 | 916,000 | 1,000,000 | 1,005,000 | 929,000 | 1,032,000 | 1,025,000 | 1,113,000 | 1,034,000 |
| Inventory turnover | 5.04 | 4.85 | 4.73 | 5.14 | 7.50 | 6.97 | 6.39 | 7.57 | 7.88 | 8.05 | 7.45 | 7.95 | 8.43 | 7.72 | 7.92 | 8.54 | 7.79 | 7.87 | 7.34 | 7.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,856,000K ÷ $765,000K
= 5.04
The inventory turnover ratio of ODP Corp has shown some fluctuation over the past few quarters. The ratio indicates how many times the company's inventory is sold and replaced within a given time period. A higher ratio generally implies that the company is managing its inventory efficiently.
From the data provided, we can see that the inventory turnover ratio for ODP Corp ranged from 4.73 to 8.54 over the past few quarters. The trend indicates some variability in the efficiency of inventory management. In the most recent quarter, the ratio was 5.04, which suggests that the company's inventory turned over approximately 5 times during that period.
The significant decrease in the inventory turnover ratio from 7.57 in March 2022 to 5.04 in December 2023 may raise some concerns about inventory management efficiency. Further analysis would be needed to understand the factors driving this change and whether it is a temporary fluctuation or a more long-term trend.
Overall, ODP Corp should monitor its inventory turnover ratio closely to ensure optimal management of its inventory levels and identify areas for improvement in its operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023