Allegion PLC (ALLE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,103,700 | 2,069,300 | 1,949,500 | 1,662,500 | 1,541,100 |
| Inventory | US$ in thousands | 423,000 | 438,500 | 479,000 | 380,400 | 283,100 |
| Inventory turnover | 4.97 | 4.72 | 4.07 | 4.37 | 5.44 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,103,700K ÷ $423,000K
= 4.97
Inventory turnover for Allegion PLC has shown a declining trend over the years, starting at 5.44 in December 31, 2020, decreasing to 4.37 in December 31, 2021, further dropping to 4.07 in December 31, 2022, before slightly increasing to 4.72 in December 31, 2023, and then reaching 4.97 in December 31, 2024. This indicates that the company is selling its inventory at a slower rate compared to the previous years, which could indicate potential inefficiencies in inventory management or slower sales growth. Further analysis would be needed to understand the underlying reasons for this trend and to determine the impact on the company's overall financial performance.