Autoliv Inc (ALV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,154,000 | 7,886,000 | 7,161,000 | 6,708,500 | 7,430,500 |
| Inventory | US$ in thousands | 1,012,000 | 969,000 | 777,000 | 798,000 | 741,000 |
| Inventory turnover | 9.05 | 8.14 | 9.22 | 8.41 | 10.03 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,154,000K ÷ $1,012,000K
= 9.05
Autoliv Inc.'s inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory levels. The higher the ratio, the better, as it suggests that Autoliv Inc. is selling its inventory quickly.
In 2023, the inventory turnover ratio was 8.55, which was an improvement from the previous year's ratio of 7.68. This increase indicates that Autoliv Inc. was able to sell its inventory at a faster rate in 2023 compared to 2022.
Comparing the 2023 ratio to 2021 and 2020, Autoliv Inc.'s inventory turnover was slightly lower. However, it is important to note that the inventory turnover ratios for these years were still relatively high, indicating efficient inventory management.
The highest inventory turnover ratio was recorded in 2019 at 9.40, showing that Autoliv Inc. was exceptionally efficient in managing its inventory levels and converting them into sales during that year.
Overall, Autoliv Inc.'s inventory turnover ratios demonstrate a generally healthy trend, with some fluctuations, indicating effective inventory management practices and efficient sales processes over the past five years.
Peer comparison
Dec 31, 2023