Rollins Inc (ROL)

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	2,568,301	2,482,129	2,409,443	2,322,174	2,277,754	2,325,950	2,223,764	2,110,403	2,036,588	2,197,773	2,141,518	2,085,062	2,067,918	1,557,537	1,382,775	1,209,233	993,593	960,543	928,112	905,551
Inventory	US$ in thousands	33,383	33,223	32,685	30,859	29,745	28,572	29,515	29,062	28,926	26,976	29,952	32,645	30,843	30,386	34,064	21,527	19,476	17,500	17,579	16,572
Inventory turnover		76.93	74.71	73.72	75.25	76.58	81.41	75.34	72.62	70.41	81.47	71.50	63.87	67.05	51.26	40.59	56.17	51.02	54.89	52.80	54.64

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,568,301K ÷ $33,383K
= 76.93

The inventory turnover for Rollins, Inc. over the past eight quarters has remained relatively stable, ranging from a low of 41.17 in Q1 2022 to a high of 44.73 in Q3 2022. This indicates that the company efficiently manages its inventory by converting it into sales multiple times within a specific period.

On average, the inventory turnover for Rollins, Inc. during this period is approximately 43.36, suggesting that the company effectively sells and replenishes its inventory. A high inventory turnover ratio signifies that Rollins is selling its products quickly, which can lead to better cash flow and reduced risk of obsolete inventory.

Overall, the consistent and relatively high inventory turnover for Rollins, Inc. indicates a healthy inventory management strategy, which may contribute positively to the company's financial performance and profitability.

Peer comparison

Dec 31, 2023

Company name

Symbol

Inventory turnover

Rollins Inc

ROL

76.93

ABM Industries Incorporated