Waste Management Inc (WM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,102,000 | 15,071,000 | 14,524,000 | 13,245,000 | 11,356,000 |
| Inventory | US$ in thousands | 206,000 | 173,000 | 164,000 | 135,000 | 124,000 |
| Inventory turnover | 78.17 | 87.12 | 88.56 | 98.11 | 91.58 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,102,000K ÷ $206,000K
= 78.17
The inventory turnover ratio for Waste Management Inc indicates how efficiently the company manages its inventory levels during the specified periods. The trend in the inventory turnover ratio from December 31, 2020, to December 31, 2024, shows a slight fluctuation.
Initially, on December 31, 2020, the inventory turnover ratio was 91.58, indicating that the company turned over its inventory approximately 91.58 times during that year. The ratio increased to 98.11 on December 31, 2021, suggesting an improvement in inventory management efficiency. However, the ratio then decreased to 88.56 on December 31, 2022, and further to 87.12 on December 31, 2023, indicating a decline in the rate of inventory turnover.
By December 31, 2024, the inventory turnover ratio decreased to 78.17, reflecting a continuing decrease in the efficiency of managing inventory turnover. Overall, the company's inventory turnover ratios fluctuated over the specified periods, with a general decreasing trend towards the end of the period. This suggests potential challenges in managing inventory effectively, which may impact the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024