Waste Management Inc (WM)
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 | 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 | 8,431,000 | 8,402,000 | 8,293,000 | 8,138,000 |
| Inventory | US$ in thousands | 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 | 106,000 | 109,000 | 104,000 | 105,000 |
| Inventory turnover | 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 | 79.54 | 77.08 | 79.74 | 77.50 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,006,000K ÷ $173,000K
= 86.74
The inventory turnover for Waste Management, Inc. has been consistent and relatively high over the past eight quarters, ranging from 71.73 to 77.18. This indicates that the company efficiently manages its inventory levels and quickly turns over its inventory into sales.
A high inventory turnover ratio suggests that Waste Management, Inc. is effectively managing its inventory by avoiding excess stock sitting idle, which could potentially become obsolete or result in storage costs. This can lead to better liquidity and cash flow for the company as it minimizes the amount of capital tied up in inventory.
However, it's important to note that an extremely high inventory turnover ratio could also indicate inventory shortages or difficulty in meeting customer demand, which may result in missed sales opportunities.
Overall, Waste Management, Inc.'s consistently high inventory turnover ratios reflect strong inventory management practices and efficiency in converting inventory into sales.
Peer comparison
Dec 31, 2023
Dec 31, 2023