Allegion PLC (ALLE)
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 | 2,970,400 | 2,937,500 | 2,961,000 | 2,856,600 | 2,698,200 | 2,583,200 | 2,411,000 | 2,386,900 | 2,346,400 | 1,785,800 | 1,777,300 | 1,670,600 | 1,754,800 | 2,305,100 | 2,318,000 | 2,412,100 | 2,312,300 | 2,284,900 | 2,277,700 | 2,255,300 |
| Inventory | US$ in thousands | 438,500 | 468,700 | 483,100 | 472,700 | 479,000 | 477,900 | 428,400 | 402,900 | 380,400 | 345,700 | 310,000 | 289,900 | 283,100 | 289,600 | 293,600 | 275,500 | 269,900 | 293,900 | 304,700 | 296,800 |
| Inventory turnover | 6.77 | 6.27 | 6.13 | 6.04 | 5.63 | 5.41 | 5.63 | 5.92 | 6.17 | 5.17 | 5.73 | 5.76 | 6.20 | 7.96 | 7.90 | 8.76 | 8.57 | 7.77 | 7.48 | 7.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,970,400K ÷ $438,500K
= 6.77
Allegion plc's inventory turnover has shown a generally increasing trend over the past eight quarters, indicating efficient management of inventory levels. The company's inventory turnover ratio has improved from 3.89 in Q3 2022 to 4.72 in Q4 2023, reflecting the ability to sell and replace inventory more frequently within a given period. This suggests effective inventory control measures, such as accurate demand forecasting and efficient supply chain management. Overall, Allegion plc's increasing inventory turnover ratio signifies a positive indication of operational efficiency and effective inventory management practices.