Republic Services Inc (RSG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,883,200 | 9,916,600 | 8,147,200 | 7,346,800 | 7,561,300 |
| Inventory | US$ in thousands | 97,300 | 96,600 | 72,200 | 59,100 | 56,800 |
| Inventory turnover | 111.85 | 102.66 | 112.84 | 124.31 | 133.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,883,200K ÷ $97,300K
= 111.85
Over the past five years, Republic Services, Inc.'s inventory turnover has exhibited a declining trend. The inventory turnover ratio was 110.89 in 2019, dropping to 103.22 in 2020, further decreasing to 93.32 in 2021, and then to 84.94 in 2022. However, there was a slight increase in inventory turnover to 91.90 in 2023.
The decreasing trend in inventory turnover suggests that Republic Services, Inc. is taking longer to sell its inventory or that there may be inefficiencies in managing and utilizing its inventory effectively. A lower inventory turnover ratio could indicate overstocking, obsolete inventory, or difficulties in selling products.
It is essential for the company to monitor and improve its inventory management practices to optimize its working capital, reduce carrying costs, and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023