Philip Morris International Inc (PM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,207,000 | 12,398,000 | 12,166,000 | 11,433,000 | 12,718,000 |
| Inventory | US$ in thousands | 10,774,000 | 9,886,000 | 8,720,000 | 9,591,000 | 9,235,000 |
| Inventory turnover | 1.41 | 1.25 | 1.40 | 1.19 | 1.38 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,207,000K ÷ $10,774,000K
= 1.41
The inventory turnover for Philip Morris International Inc has fluctuated over the past five years. In 2023, the company's inventory turnover ratio was 1.20, indicating that the company sold and replaced its inventory 1.20 times during the year. This represents an improvement compared to the previous year (1.15 in 2022) and is higher than the ratios in 2021 and 2019.
A higher inventory turnover ratio suggests that the company is managing its inventory efficiently and effectively, which can lead to lower carrying costs and potential higher profitability. However, it is essential to consider industry norms and the nature of the business when evaluating inventory turnover ratios. Overall, the upward trend in Philip Morris International Inc's inventory turnover ratio reflects positive operational performance and effective management of inventory levels.
Peer comparison
Dec 31, 2023