Carrier Global Corp (CARR)
Inventory turnover
| 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 | 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 | 2,217,000 | 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 | 1,581,000 | 1,639,000 | 1,556,000 |
| Inventory turnover | 1.64 | 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, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,637,000K ÷ $2,217,000K
= 1.64
Carrier Global Corp's inventory turnover ratio has exhibited fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced within a given period.
In Q4 2023, the inventory turnover ratio increased to 7.09, reflecting an improvement in the company's inventory management efficiency compared to the previous quarter. This signifies that Carrier Global Corp sold and replaced its inventory approximately 7.09 times during the quarter.
However, it is important to note that the inventory turnover ratio in Q3 2023 was lower at 6.21, indicating a slight decrease in the efficiency of inventory management compared to the current quarter. The trend continued with a lower ratio of 5.91 in Q2 2023 and 5.53 in Q1 2023, which suggests a potential issue with inventory management during that period.
Looking back at Q4 2022, the inventory turnover ratio was 5.67, which was slightly lower than the current quarter but improved compared to the preceding quarters in 2023. The company maintained relatively consistent inventory turnover ratios in Q3 2022 (5.58), Q2 2022 (6.23), and Q1 2022 (6.23), indicating stable inventory management practices during that period.
Overall, while there have been fluctuations in Carrier Global Corp's inventory turnover ratio in recent quarters, the latest data point of 7.09 suggests an improvement in inventory management efficiency. It is essential for the company to continue monitoring and optimizing its inventory levels to ensure effective utilization of resources and to meet customer demand efficiently.
Peer comparison
Dec 31, 2023
Dec 31, 2023