Agilent Technologies Inc (A)
Inventory turnover
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,745,000 | 4,764,000 | 5,296,000 | 5,422,000 | 5,484,000 | 5,545,000 | 5,046,000 | 4,993,000 | 4,987,000 | 4,892,000 | 4,850,000 | 4,843,000 | 4,775,000 | 4,707,000 | 4,499,000 | 4,404,000 | 4,332,000 | 4,265,000 | 4,259,000 | 4,122,000 |
| Inventory | US$ in thousands | 972,000 | 978,000 | 1,000,000 | 1,033,000 | 1,031,000 | 1,072,000 | 1,103,000 | 1,111,000 | 1,038,000 | 1,010,000 | 937,000 | 879,000 | 830,000 | 818,000 | 791,000 | 755,000 | 720,000 | 746,000 | 750,000 | 706,000 |
| Inventory turnover | 4.88 | 4.87 | 5.30 | 5.25 | 5.32 | 5.17 | 4.57 | 4.49 | 4.80 | 4.84 | 5.18 | 5.51 | 5.75 | 5.75 | 5.69 | 5.83 | 6.02 | 5.72 | 5.68 | 5.84 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,745,000K ÷ $972,000K
= 4.88
Agilent Technologies Inc's inventory turnover has been relatively stable over the past few years, ranging between 4.49 to 6.02 times. Inventory turnover measures how efficiently a company manages its inventory by indicating how many times during a period the company sells and replaces its inventory. A higher inventory turnover ratio indicates better inventory management and efficiency in turning inventory into sales.
From the data provided, we can observe that Agilent's inventory turnover ratio has generally been above 4.5, which is a positive sign as it shows that the company is able to sell and replenish its inventory multiple times throughout the year. A consistent inventory turnover ratio reflects effective inventory management practices and can lead to lower holding costs and higher profitability.
It is worth noting that the inventory turnover ratio tends to vary by industry, so it is essential to compare it to industry benchmarks to get a better understanding of Agilent's performance in this aspect. Additionally, analyzing the trend of inventory turnover over time can provide insights into the company's inventory management efficiency and operational performance.
Peer comparison
Oct 31, 2024
Oct 31, 2024