Philip Morris International Inc (PM)
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 | 14,893,000 | 14,241,000 | 14,021,000 | 12,805,000 | 12,437,000 | 12,535,000 | 12,208,000 | 11,877,000 | 11,607,000 | 11,223,000 | 11,039,000 | 10,931,000 | 11,002,000 | 11,562,000 | 11,767,000 | 12,200,000 | 12,280,000 | 12,398,000 | 12,381,000 | 25,796,000 |
| Inventory | US$ in thousands | 10,774,000 | 9,645,000 | 9,900,000 | 10,712,000 | 9,886,000 | 7,153,000 | 7,551,000 | 8,684,000 | 8,720,000 | 8,173,000 | 8,690,000 | 9,019,000 | 9,591,000 | 8,160,000 | 8,968,000 | 9,045,000 | 9,235,000 | 8,529,000 | 8,255,000 | 8,318,000 |
| Inventory turnover | 1.38 | 1.48 | 1.42 | 1.20 | 1.26 | 1.75 | 1.62 | 1.37 | 1.33 | 1.37 | 1.27 | 1.21 | 1.15 | 1.42 | 1.31 | 1.35 | 1.33 | 1.45 | 1.50 | 3.10 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,893,000K ÷ $10,774,000K
= 1.38
The inventory turnover ratios of Philip Morris International Inc over the past eight quarters have ranged from 1.10 to 1.54. This metric indicates the efficiency with which the company manages its inventory by measuring how many times the inventory is sold and replaced within a given period.
A higher inventory turnover ratio implies a more efficient management of inventory, as it suggests that the company is selling its products quickly and not holding onto excess inventory. Conversely, a lower ratio may indicate slower sales, excess inventory, or potential obsolescence.
In the case of Philip Morris International Inc, the inventory turnover has fluctuated over the quarters, ranging from 1.10 to 1.54. This variability could be influenced by factors such as seasonal demand, production schedules, or changes in consumer preferences within the tobacco industry.
Overall, while the company's inventory turnover has shown some fluctuations, it is essential to analyze this metric in conjunction with other financial ratios and industry benchmarks to gain a comprehensive understanding of Philip Morris International Inc's operational efficiency and inventory management strategy.
Peer comparison
Dec 31, 2023
Dec 31, 2023
See also:
Philip Morris International Inc Inventory Turnover (Quarterly Data)