Rollins Inc (ROL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,584,910 | 2,294,860 | 2,078,840 | 2,122,780 | 993,593 |
| Inventory | US$ in thousands | 33,383 | 29,745 | 28,926 | 30,843 | 19,476 |
| Inventory turnover | 77.43 | 77.15 | 71.87 | 68.83 | 51.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,584,910K ÷ $33,383K
= 77.43
Rollins, Inc.'s inventory turnover has been relatively stable over the past five years, ranging from 34.00 to 51.02. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently during the year.
In this case, Rollins, Inc. has shown a consistently high inventory turnover, with the ratio peaking in 2019 at 51.02 and remaining above 40 in the subsequent years. This suggests that the company efficiently manages its inventory levels, ensuring minimal holding costs and potential obsolescence.
A high inventory turnover ratio can also imply strong sales or effective inventory management practices. It indicates that Rollins, Inc. is able to quickly turn its inventory into sales, which can be beneficial for maintaining a healthy cash flow and minimizing the risk of inventory-related losses.
Overall, Rollins, Inc.'s inventory turnover ratios reflect positively on the company's efficient inventory management and operational effectiveness over the years.
Peer comparison
Dec 31, 2023