Aptiv PLC (APTV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,193,000 | 16,908,000 | 15,056,000 | 11,126,000 | 11,711,000 |
| Inventory | US$ in thousands | 2,365,000 | 2,340,000 | 2,014,000 | 1,297,000 | 1,286,000 |
| Inventory turnover | 8.12 | 7.23 | 7.48 | 8.58 | 9.11 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $19,193,000K ÷ $2,365,000K
= 8.12
The inventory turnover ratio for Aptiv PLC has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced during a specific period.
Aptiv PLC's inventory turnover ratio was 7.02 in 2023, which indicates that the company's inventory was turned over approximately 7.02 times during the year. This represents an improvement compared to the previous year when the ratio stood at 6.35.
In 2021 and 2020, the inventory turnover ratios were 6.55 and 8.58, respectively. The declining trend from 2020 to 2021 may suggest that the company held onto its inventory for a longer period in 2021, potentially due to various factors such as changes in customer demand or supply chain disruptions.
Notably, in 2019, Aptiv PLC achieved a higher inventory turnover ratio of 9.11, indicating a more efficient management of inventory that year.
Overall, while there have been fluctuations in Aptiv PLC's inventory turnover ratio in recent years, it is important for the company to monitor and optimize its inventory management practices to ensure efficient use of resources and maintain profitability.
Peer comparison
Dec 31, 2023