WESCO International Inc (WCC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,978,800 | 19,982,000 | 17,415,900 | 11,979,100 | 6,777,460 |
| Inventory | US$ in thousands | 3,572,100 | 3,498,800 | 2,666,220 | 2,163,830 | 1,011,670 |
| Inventory turnover | 5.87 | 5.71 | 6.53 | 5.54 | 6.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $20,978,800K ÷ $3,572,100K
= 5.87
The inventory turnover ratio for Wesco International, Inc. has shown some fluctuations over the past five years. In 2023, the inventory turnover was 4.91 times, indicating that the company sold and replaced its inventory approximately 4.91 times during the year. This was a slight increase from the previous year's ratio of 4.79.
Looking back further, in 2021, Wesco International had an inventory turnover of 5.41, higher than the 2023 ratio, suggesting that the company managed its inventory more efficiently in that year. The ratio was lower in 2020 at 4.62, indicating a potential inefficiency in inventory management during that period.
The highest inventory turnover ratio in the table was observed in 2019 at 6.70, suggesting that Wesco International had a more effective inventory management strategy in place that year. Overall, while there have been some fluctuations, the company has generally maintained a reasonable level of inventory turnover, indicating a consistent effort to manage its inventory efficiently over the years.
Peer comparison
Dec 31, 2023