Philip Morris International Inc (PM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,545,000 | 15,207,000 | 12,398,000 | 12,166,000 | 11,433,000 |
| Inventory | US$ in thousands | 9,453,000 | 10,774,000 | 9,886,000 | 8,720,000 | 9,591,000 |
| Inventory turnover | 1.64 | 1.41 | 1.25 | 1.40 | 1.19 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,545,000K ÷ $9,453,000K
= 1.64
Philip Morris International Inc's inventory turnover has shown a positive trend over the past five years. The inventory turnover ratio increased from 1.19 in 2020 to 1.64 in 2024. This indicates that the company is selling its inventory more efficiently. An increasing inventory turnover ratio suggests that Philip Morris International Inc is managing its inventory levels effectively, resulting in quicker sales and reduced holding costs. This improvement may be attributed to better inventory management processes, demand forecasting, and efficient supply chain operations. Overall, the rising trend in inventory turnover reflects positively on the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024