United Parcel Service Inc (UPS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 74,714,000 | 73,727,000 | 87,244,000 | 84,477,000 | 76,814,000 |
| Inventory | US$ in thousands | 826,000 | 935,000 | 889,000 | 717,000 | 620,000 |
| Inventory turnover | 90.45 | 78.85 | 98.14 | 117.82 | 123.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $74,714,000K ÷ $826,000K
= 90.45
Based on the provided data, United Parcel Service Inc's inventory turnover has exhibited fluctuating trends over the past five years. The inventory turnover ratio decreased from 123.89 in December 31, 2020, to 117.82 in December 31, 2021, indicating a slight decline in the efficiency of inventory management. Subsequently, the ratio further decreased to 98.14 in December 31, 2022, signifying a potential challenge in converting inventory into sales.
By December 31, 2023, the inventory turnover ratio plummeted to 78.85, reflecting a substantial decrease in the company's ability to sell its inventory. However, there was a slight improvement in the ratio as it increased to 90.45 by December 31, 2024, suggesting a slight enhancement in inventory turnover efficiency.
Overall, United Parcel Service Inc's inventory turnover has experienced fluctuations, indicating variations in the company's inventory management efficiency over the analyzed period. Further analysis and monitoring of inventory turnover trends may be necessary to assess the effectiveness of the company's inventory control and sales strategies.