PPG Industries Inc (PPG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,252,000 | 10,699,000 | 11,096,000 | 10,286,000 | 7,777,000 |
| Inventory | US$ in thousands | 1,846,000 | 2,127,000 | 2,272,000 | 2,171,000 | 1,735,000 |
| Inventory turnover | 5.01 | 5.03 | 4.88 | 4.74 | 4.48 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,252,000K ÷ $1,846,000K
= 5.01
The inventory turnover ratio for PPG Industries Inc has been steadily increasing over the past five years. Starting at 4.48 in December 31, 2020, it progressed to 4.74 in December 31, 2021, then to 4.88 in December 31, 2022, further to 5.03 in December 31, 2023, and then remained relatively stable at 5.01 by December 31, 2024.
A rising inventory turnover ratio indicates that PPG Industries Inc is selling its inventory at a faster pace, which can be a positive sign of efficiency in managing and selling its products. This can lead to lower holding costs, reduced risk of obsolete inventory, and potentially higher profitability.
Overall, the trending increase in inventory turnover ratio suggests that PPG Industries Inc has been effectively managing its inventory levels and converting it into sales efficiently over the specified period.
Peer comparison
Dec 31, 2024