Rollins Inc (ROL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,845,000 | 2,584,910 | 2,294,860 | 2,078,840 | 2,122,780 |
| Inventory | US$ in thousands | 39,531 | 33,383 | 29,745 | 28,926 | 30,843 |
| Inventory turnover | 71.97 | 77.43 | 77.15 | 71.87 | 68.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,845,000K ÷ $39,531K
= 71.97
The inventory turnover of Rollins Inc has shown positive trends over the five-year period from December 31, 2020, to December 31, 2024. The company's inventory turnover ratio has increased steadily from 68.83 in 2020 to 71.87 in 2021, further improving to 77.15 in 2022, 77.43 in 2023, and then slightly dipping to 71.97 in 2024.
A higher inventory turnover ratio indicates that Rollins Inc is efficiently managing its inventory by selling and replenishing it at a faster pace. This can imply effective inventory management practices, such as maintaining optimal inventory levels, minimizing carrying costs, and responding promptly to changes in demand.
Overall, the consistent improvement in Rollins Inc's inventory turnover ratio reflects positively on the company's operational efficiency and ability to convert inventory into sales. However, the slight decline in 2024 may warrant monitoring to ensure continued effective inventory management in the future.
Peer comparison
Dec 31, 2024