Carrier Global Corp (CARR)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 21,040,000 | 4,572,000 | 4,418,000 | 4,047,000 | 3,637,000 | 3,297,000 | 3,046,000 | 2,840,000 | 2,671,000 | 2,816,000 | 2,920,000 | 3,112,000 | 3,246,000 | 3,232,000 | 3,154,000 | 2,973,000 | 2,982,000 |
| Inventory | US$ in thousands | 2,299,000 | 2,646,000 | 3,045,000 | 3,189,000 | 1,823,000 | 2,562,000 | 2,699,000 | 2,803,000 | 2,640,000 | 2,664,000 | 2,350,000 | 2,358,000 | 1,970,000 | 1,926,000 | 1,885,000 | 1,854,000 | 1,629,000 |
| Inventory turnover | 9.15 | 1.73 | 1.45 | 1.27 | 2.00 | 1.29 | 1.13 | 1.01 | 1.01 | 1.06 | 1.24 | 1.32 | 1.65 | 1.68 | 1.67 | 1.60 | 1.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,040,000K ÷ $2,299,000K
= 9.15
The inventory turnover for Carrier Global Corp has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher turnover ratio generally implies that the company is efficiently selling its inventory and replenishing it with new stock.
Analyzing the data provided, we observe that the inventory turnover ratio was 1.83 on December 31, 2020, and gradually decreased to 1.01 by March 31, 2023. This decline may indicate a potential issue with excess or obsolete inventory, inefficient management of stock, or a slowdown in sales.
The inventory turnover ratio saw a significant spike to 2.00 on December 31, 2023, before dropping to 1.27 on March 31, 2024, and then gradually increasing again to 9.15 by December 31, 2024. Such a sharp increase in the ratio in a short period typically suggests a shortage of inventory or a sudden surge in sales.
It is important for the company to carefully monitor its inventory turnover ratio to ensure optimal inventory management, avoid excess holding costs, and improve working capital efficiency. Fluctuations in the ratio should be investigated to identify underlying issues and implement strategies for more effective inventory management.
Peer comparison
Dec 31, 2024
Dec 31, 2024