Belden Inc (BDC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,538,757 | 1,467,409 | 1,442,126 | 1,495,513 | 1,557,118 | 1,624,834 | 1,671,040 | 1,684,369 | 1,690,196 | 1,681,632 | 1,651,171 | 1,591,428 | 1,529,417 | 1,425,814 | 1,332,677 | 1,223,045 | 1,176,570 | 1,223,059 | 1,249,105 | 1,317,514 |
| Inventory | US$ in thousands | 343,099 | 368,435 | 374,991 | 374,419 | 366,987 | 336,420 | 345,427 | 370,729 | 341,563 | 351,440 | 394,346 | 396,497 | 345,203 | 312,088 | 304,821 | 275,405 | 247,298 | 244,815 | 242,677 | 252,921 |
| Inventory turnover | 4.48 | 3.98 | 3.85 | 3.99 | 4.24 | 4.83 | 4.84 | 4.54 | 4.95 | 4.78 | 4.19 | 4.01 | 4.43 | 4.57 | 4.37 | 4.44 | 4.76 | 5.00 | 5.15 | 5.21 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,538,757K ÷ $343,099K
= 4.48
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Belden Inc, the inventory turnover ratio has been showing a gradual decline from 5.21 in March 2020 to 4.48 in December 2024. This indicates that the company's ability to sell and replace its inventory has been slowing down over this period.
A decreasing inventory turnover ratio may suggest potential issues such as overstocking, slow-moving inventory, or declining demand for the company's products. It also implies that Belden Inc is taking longer to sell its inventory, which could lead to higher carrying costs and potentially lower profitability.
It is important for Belden Inc to closely monitor its inventory turnover ratio and investigate the reasons behind the downward trend. Implementing effective inventory management strategies, such as optimizing reorder levels, improving demand forecasting, or liquidating obsolete inventory, could help improve the ratio and enhance the company's overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024