Carrier Global Corp (CARR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,654,000 | 3,637,000 | 2,671,000 | 3,248,000 | 2,983,000 |
| Inventory | US$ in thousands | 2,299,000 | 1,823,000 | 2,640,000 | 1,970,000 | 1,629,000 |
| Inventory turnover | 8.98 | 2.00 | 1.01 | 1.65 | 1.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $20,654,000K ÷ $2,299,000K
= 8.98
The inventory turnover ratio for Carrier Global Corp has fluctuated over the years based on the provided data. It decreased from 1.83 in December 31, 2020, to 1.65 in December 31, 2021, indicating a slightly lower efficiency in managing inventory during that period. Subsequently, the ratio dropped significantly to 1.01 by December 31, 2022, reflecting potential challenges in inventory management efficiency.
However, there was a notable improvement in inventory turnover as the ratio increased to 2.00 by December 31, 2023, suggesting a better utilization of inventory during that year. The most significant change occurred by December 31, 2024, where the inventory turnover ratio surged to 8.98, indicating a substantial enhancement in managing and selling inventory efficiently.
It is crucial for Carrier Global Corp to maintain a balance in inventory turnover, ensuring optimal utilization of resources and timely sales to avoid excess inventory accumulation or stockouts, which can impact profitability and liquidity. The company should continue monitoring and improving its inventory management processes to sustain efficient operations and maximize profitability going forward.
Peer comparison
Dec 31, 2024