Agilent Technologies Inc (A)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,745,000 | 5,484,000 | 4,987,000 | 4,776,000 | 4,332,000 |
| Inventory | US$ in thousands | 972,000 | 1,031,000 | 1,038,000 | 830,000 | 720,000 |
| Inventory turnover | 4.88 | 5.32 | 4.80 | 5.75 | 6.02 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,745,000K ÷ $972,000K
= 4.88
The inventory turnover ratio measures the efficiency with which a company manages its inventory by indicating how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio suggests that the company is selling its products quickly and efficiently.
Analyzing Agilent Technologies Inc's inventory turnover ratio over the past five years reveals fluctuations in the efficiency of its inventory management. The trend shows a general decline from 6.02 in 2020 to 4.88 in 2024, with some variation in between.
A decreasing inventory turnover ratio could indicate potential issues such as overstocking, obsolescence, or slowing sales. It may also suggest possible inefficiencies in inventory management or procurement processes.
On the other hand, a high and consistent inventory turnover ratio, like the ones seen in 2020 and 2021, could signify strong sales performance, effective inventory control, and optimal stocking levels.
Overall, a detailed analysis of Agilent Technologies Inc's inventory turnover ratios highlights the importance of monitoring this metric over time to assess the company's operational efficiency and effectiveness in managing its inventory levels.
Peer comparison
Oct 31, 2024