Carrier Global Corp (CARR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,637,000 | 2,671,000 | 3,248,000 | 2,983,000 |
| Inventory | US$ in thousands | 2,217,000 | 2,640,000 | 1,970,000 | 1,629,000 |
| Inventory turnover | 1.64 | 1.01 | 1.65 | 1.83 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,637,000K ÷ $2,217,000K
= 1.64
The inventory turnover ratio for Carrier Global Corp has shown some fluctuations over the past five years. In 2019, the inventory turnover was 9.90, indicating that the company's inventory was sold and replaced almost 10 times during that year. However, this ratio has gradually decreased over the following years, reaching 7.09 in 2023.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling and replacing it. On the other hand, a lower ratio may suggest overstocking, slow-moving inventory, or potentially slowing sales.
Carrier Global Corp's inventory turnover ratio has fluctuated within a range of 5.67 to 9.90 over the past five years, indicating some variability in their inventory management efficiency. Further analysis of the company's operations and industry trends may be necessary to understand the reasons behind these fluctuations and to assess the effectiveness of their inventory management strategies.
Peer comparison
Dec 31, 2023