Caterpillar Inc (CAT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,485,000 | 43,797,000 | 41,915,000 | 35,968,000 | 29,671,000 |
| Inventory | US$ in thousands | 16,827,000 | 16,565,000 | 16,270,000 | 14,038,000 | 11,402,000 |
| Inventory turnover | 2.47 | 2.64 | 2.58 | 2.56 | 2.60 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,485,000K ÷ $16,827,000K
= 2.47
Caterpillar Inc's inventory turnover has shown consistency over the past five years, ranging from 2.47 to 2.64. This ratio indicates that the company is able to sell and replace its inventory approximately 2.5 to 2.6 times a year. A stable inventory turnover suggests efficient inventory management, as the company is neither overstocking nor understocking its inventory. However, it is important to monitor any significant fluctuations in this ratio to ensure optimal utilization of company resources and avoid potential issues related to inventory obsolescence or shortages.
Peer comparison
Dec 31, 2024
Company name
Symbol
Inventory turnover
Caterpillar Inc
CAT
2.47
Astec Industries Inc
ASTE
2.31
CNH Industrial N.V.
CNH
2.80