PPG Industries Inc (PPG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,821,000 | 15,793,000 | 14,809,000 | 11,989,000 | 13,038,000 |
| Inventory | US$ in thousands | 2,127,000 | 2,272,000 | 2,171,000 | 1,735,000 | 1,710,000 |
| Inventory turnover | 7.44 | 6.95 | 6.82 | 6.91 | 7.62 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,821,000K ÷ $2,127,000K
= 7.44
The inventory turnover ratio for PPG Industries, Inc. has shown a generally positive trend over the past five years, indicating improvements in managing inventory levels. The company's inventory turnover ratio increased from 4.48 in 2020 to 5.05 in 2023. This suggests that PPG Industries is effectively selling and replenishing its inventory at a faster rate, which is a positive sign of operational efficiency.
A higher inventory turnover ratio typically indicates that the company is selling its products quickly and efficiently, which can lead to lower holding costs and better cash flow management. PPG Industries' inventory turnover ratio has been consistently above 4 over the past five years, which is generally considered a good indicator for most industries.
Overall, the increasing trend in PPG Industries' inventory turnover ratio reflects the company's ability to effectively manage its inventory levels and convert them into sales, which can contribute to overall financial health and profitability.
Peer comparison
Dec 31, 2023