PPG Industries Inc (PPG)
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 | 11,793,000 | 15,488,000 | 15,462,000 | 15,396,000 | 15,599,000 | 15,764,000 | 15,731,000 | 15,435,000 | 14,613,000 | 12,863,000 | 11,969,000 | 11,009,000 | 10,674,000 | 10,645,000 | 10,869,000 | 11,680,000 | 11,824,000 | 11,901,000 | 9,667,000 | 7,267,000 |
| Inventory | US$ in thousands | 2,127,000 | 2,217,000 | 2,506,000 | 2,599,000 | 2,272,000 | 2,411,000 | 2,481,000 | 2,439,000 | 2,171,000 | 2,249,000 | 2,226,000 | 1,914,000 | 1,735,000 | 1,672,000 | 1,706,000 | 1,859,000 | 1,710,000 | 1,860,000 | 1,945,000 | 1,965,000 |
| Inventory turnover | 5.54 | 6.99 | 6.17 | 5.92 | 6.87 | 6.54 | 6.34 | 6.33 | 6.73 | 5.72 | 5.38 | 5.75 | 6.15 | 6.37 | 6.37 | 6.28 | 6.91 | 6.40 | 4.97 | 3.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,793,000K ÷ $2,127,000K
= 5.54
The inventory turnover of PPG Industries, Inc. has shown a relatively stable trend over the past eight quarters. The company's inventory turnover ratio ranged from 4.23 to 5.05 during this period.
The inventory turnover ratio measures how effectively a company is managing its inventory levels by indicating how many times the inventory is sold and replaced over a certain period. A higher inventory turnover ratio generally indicates that a company is selling its inventory quickly and efficiently.
PPG Industries, Inc. has consistently maintained a healthy inventory turnover ratio above 4, indicating efficient management of its inventory levels. This stability suggests that the company has a good control over its inventory and is able to convert it into sales effectively.
Overall, the trend in inventory turnover ratios for PPG Industries, Inc. indicates sound inventory management practices, which may positively impact its financial performance and operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023