WESCO International Inc (WCC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 17,197,800 | 17,164,700 | 17,310,400 | 17,485,700 | 17,541,500 | 17,579,130 | 17,398,130 | 17,189,130 | 16,758,800 | 16,262,610 | 15,741,540 | 15,078,070 | 14,425,440 | 13,938,290 | 13,574,220 | 11,636,520 | 9,998,330 | 8,351,100 | 6,742,750 | 6,790,920 |
| Inventory | US$ in thousands | 3,501,700 | 3,630,100 | 3,505,800 | 3,525,400 | 3,572,100 | 3,541,400 | 3,584,300 | 3,729,500 | 3,498,820 | 3,490,120 | 3,165,830 | 2,881,260 | 2,666,220 | 2,569,800 | 2,436,520 | 2,290,450 | 2,163,620 | 2,357,630 | 2,368,830 | 950,521 |
| Inventory turnover | 4.91 | 4.73 | 4.94 | 4.96 | 4.91 | 4.96 | 4.85 | 4.61 | 4.79 | 4.66 | 4.97 | 5.23 | 5.41 | 5.42 | 5.57 | 5.08 | 4.62 | 3.54 | 2.85 | 7.14 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,197,800K ÷ $3,501,700K
= 4.91
WESCO International Inc's inventory turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio, which measures how efficiently the company is managing its inventory, increased from 7.14 on March 31, 2020, to a peak of 5.57 on June 30, 2021, before gradually declining to 4.91 by December 31, 2024.
A higher inventory turnover ratio generally indicates that a company is selling its inventory more quickly, which could result from strong sales performance, effective inventory management, or changes in customer demand. On the other hand, a lower ratio may suggest inefficient inventory management, overstocking, or slow sales.
The declining trend observed in WESCO International Inc's inventory turnover from mid-2021 to the end of 2024 could be indicative of changes in the company's sales patterns, supply chain disruptions, or challenges in demand forecasting. Further analysis may be required to understand the specific factors influencing the fluctuations in the inventory turnover ratio over this period and to assess the impact on the company's overall operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024