Autoliv Inc (ALV)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 8,463,000 8,654,000 7,446,000 6,719,000 6,200,500
Inventory US$ in thousands 921,000 1,012,000 969,000 777,000 798,300
Inventory turnover 9.19 8.55 7.68 8.65 7.77

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,463,000K ÷ $921,000K
= 9.19

Autoliv Inc's inventory turnover has shown a positive trend over the past five years. The ratio increased from 7.77 in 2020 to 9.19 in 2024, indicating that the company is managing its inventory more efficiently. A higher inventory turnover ratio suggests that Autoliv Inc is able to sell its inventory at a quicker pace, which could lead to lower storage costs and reduced risk of obsolescence. This improvement in inventory turnover reflects positively on the company's operational performance and efficiency in managing its inventory levels.