WESCO International Inc (WCC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 17,106,200 | 17,541,500 | 16,758,800 | 14,425,400 | 9,998,330 |
| Inventory | US$ in thousands | 3,501,700 | 3,572,100 | 3,498,820 | 2,666,220 | 2,163,620 |
| Inventory turnover | 4.89 | 4.91 | 4.79 | 5.41 | 4.62 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $17,106,200K ÷ $3,501,700K
= 4.89
Inventory turnover is a crucial financial ratio that measures how effectively a company manages its inventory. For WESCO International Inc, the inventory turnover has shown fluctuations over the years.
In 2020, the inventory turnover was 4.62 times, indicating that the company's inventory was sold and replaced approximately 4.62 times during the year. This implies that WESCO effectively managed its inventory during that period.
By the end of 2021, the inventory turnover improved to 5.41 times, suggesting that the company became more efficient in selling its inventory. This increase indicates that WESCO reduced the amount of time it takes to sell and replace its inventory, which is a positive sign.
In 2022, the inventory turnover slightly decreased to 4.79 times, showing a small dip in efficiency compared to the previous year. However, the ratio remained relatively healthy, indicating that WESCO continued to manage its inventory reasonably well.
By the end of 2023, the inventory turnover increased to 4.91 times, showing a slight improvement in inventory management compared to the previous year. This suggests that WESCO was able to sell and replace its inventory more frequently during the year.
In 2024, the inventory turnover was recorded at 4.89 times, maintaining a stable level of efficiency in inventory management. This indicates that WESCO continued to effectively manage its inventory turnover rate.
Overall, the inventory turnover ratios for WESCO International Inc over the years demonstrate varying levels of efficiency in managing its inventory. Despite some fluctuations, the company generally maintained a healthy turnover rate, indicating effective inventory management practices.
Peer comparison
Dec 31, 2024