Aptiv PLC (APTV)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,646,000 | 19,193,000 | 16,908,000 | 15,056,000 | 11,126,000 |
| Inventory | US$ in thousands | 2,320,000 | 2,365,000 | 2,340,000 | 2,014,000 | 1,297,000 |
| Inventory turnover | 8.04 | 8.12 | 7.23 | 7.48 | 8.58 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,646,000K ÷ $2,320,000K
= 8.04
Aptiv PLC's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio, calculated as cost of goods sold divided by average inventory, provides insight into how efficiently the company manages its inventory levels.
In 2020, the inventory turnover stood at 8.58 times, indicating that Aptiv converted its inventory into sales approximately 8.58 times during the year. However, this ratio decreased to 7.48 in 2021 and further declined to 7.23 in 2022, suggesting a potential inefficiency in managing inventory levels during these periods.
There was a notable improvement in 2023, with the inventory turnover increasing to 8.12 times, reflecting a more efficient management of inventory compared to the previous years. In 2024, the ratio remained relatively stable at 8.04, indicating a consistent performance in converting inventory into sales.
Overall, Aptiv PLC's inventory turnover has shown variations over the years, with improvements in some periods and declines in others. It is essential for the company to continuously monitor and optimize its inventory management practices to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2024