WESCO International Inc (WCC)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 20,978,800 | 20,997,840 | 20,778,260 | 20,509,380 | 19,982,030 | 19,437,180 | 18,891,720 | 18,155,800 | 17,415,880 | 16,140,880 | 14,998,280 | 12,314,310 | 9,998,330 | 8,351,100 | 6,742,750 | 6,790,930 | 6,777,450 | 6,688,910 | 6,910,730 | 7,182,430 |
| Inventory | US$ in thousands | 3,572,100 | 3,541,400 | 3,584,300 | 3,729,500 | 3,498,800 | 3,490,120 | 3,165,830 | 2,881,260 | 2,666,220 | 2,569,800 | 2,436,520 | 2,290,450 | 2,163,830 | 2,357,630 | 2,368,830 | 950,521 | 1,011,670 | 961,997 | 1,004,130 | 1,001,350 |
| Inventory turnover | 5.87 | 5.93 | 5.80 | 5.50 | 5.71 | 5.57 | 5.97 | 6.30 | 6.53 | 6.28 | 6.16 | 5.38 | 4.62 | 3.54 | 2.85 | 7.14 | 6.70 | 6.95 | 6.88 | 7.17 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,978,800K ÷ $3,572,100K
= 5.87
Wesco International, Inc.'s inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio suggests that the company is selling through its inventory quickly, which is generally considered favorable.
Looking at the data provided, we can observe that Wesco's inventory turnover ratio has ranged from a low of 4.61 in Q1 2023 to a high of 5.23 in Q1 2022. Generally, the company has maintained a relatively consistent inventory turnover rate, with minor fluctuations within the range of 4.85 to 5.23. This implies that Wesco is managing its inventory efficiently and is able to sell its inventory multiple times over a given period.
The trend indicates that Wesco's inventory turnover has been relatively stable over the past two years, with only slight variations. It is essential for the company to monitor this ratio closely to ensure optimal inventory management and minimize carrying costs while meeting customer demand effectively.
Peer comparison
Dec 31, 2023
Dec 31, 2023