Waste Management Inc (WM)
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 | 16,036,000 | 15,479,000 | 15,211,000 | 15,073,000 | 15,006,000 | 14,696,000 | 14,668,000 | 14,643,000 | 14,468,000 | 14,310,000 | 14,056,000 | 13,612,000 | 13,195,000 | 12,779,000 | 12,158,000 | 11,593,000 | 11,366,000 | 8,190,000 | 8,263,000 | 8,477,000 |
| Inventory | US$ in thousands | 206,000 | 184,000 | 183,000 | 189,000 | 173,000 | 175,000 | 170,000 | 170,000 | 164,000 | 159,000 | 159,000 | 149,000 | 135,000 | 132,000 | 126,000 | 124,000 | 124,000 | 117,000 | 118,000 | 116,000 |
| Inventory turnover | 77.84 | 84.12 | 83.12 | 79.75 | 86.74 | 83.98 | 86.28 | 86.14 | 88.22 | 90.00 | 88.40 | 91.36 | 97.74 | 96.81 | 96.49 | 93.49 | 91.66 | 70.00 | 70.03 | 73.08 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,036,000K ÷ $206,000K
= 77.84
The inventory turnover of Waste Management Inc has displayed fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures the efficiency with which the company manages its inventory by indicating how many times the inventory is sold and replaced within a given period.
The trend observed in Waste Management Inc's inventory turnover ratio shows a general increase from March 31, 2020, to June 30, 2021, reaching its peak at 97.74 on December 31, 2021. This upward trend suggests that the company was able to sell and replace its inventory at a faster rate during this period.
However, starting from March 31, 2022, the inventory turnover ratio began to decline gradually, indicating a slower rate of inventory turnover. Although there were fluctuations in the ratio over the subsequent quarters, the trend remained downward overall through December 31, 2024, where the ratio stood at 77.84.
A declining inventory turnover ratio can imply a longer holding period for inventory, which may lead to increased carrying costs, storage costs, and potential obsolescence risks. It is important for Waste Management Inc to closely monitor and manage its inventory levels efficiently to optimize its operations and maintain profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024