Tootsie Roll Industries Inc (TR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 667,537 | 576,215 | 503,643 | 412,819 | 458,276 |
| Inventory | US$ in thousands | 59,244 | 56,551 | 38,307 | 44,884 | 43,593 |
| Inventory turnover | 11.27 | 10.19 | 13.15 | 9.20 | 10.51 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $667,537K ÷ $59,244K
= 11.27
Tootsie Roll Industries, Inc. has shown varied inventory turnover ratios over the past five years. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times a year the inventory is sold and replaced.
In 2023, the inventory turnover ratio was 5.40, which suggests that Tootsie Roll turned over its inventory approximately 5.40 times during the year. This indicates a slight increase compared to the previous year's ratio of 5.39. The higher ratio implies that the company's inventory management improved slightly in 2023.
In 2021, Tootsie Roll achieved a relatively high inventory turnover of 6.69, which was the highest in the period under consideration. This indicates that the company efficiently managed its inventory and was able to sell and replace its inventory 6.69 times throughout the year, reflecting strong liquidity and sales performance.
On the other hand, in 2020, the inventory turnover ratio dropped to 5.05, which was the lowest in the period. This decrease could suggest potential issues with inventory management efficiency or slower sales during that year.
Overall, Tootsie Roll Industries, Inc. has maintained a moderate level of inventory turnover over the years, with some fluctuations. The company should continue to monitor and optimize its inventory management processes to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023