Caterpillar Inc (CAT)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 41,437,000 | 42,082,000 | 42,543,000 | 43,399,000 | 43,797,000 | 44,295,000 | 43,785,000 | 42,570,000 | 41,915,000 | 40,219,000 | 38,594,000 | 37,496,000 | 35,968,000 | 33,774,000 | 32,102,000 | 30,367,000 | 29,671,000 | 31,059,000 | 32,761,000 | 35,632,000 |
| Inventory | US$ in thousands | 16,827,000 | 17,312,000 | 17,082,000 | 16,953,000 | 16,565,000 | 17,580,000 | 17,746,000 | 17,633,000 | 16,270,000 | 16,860,000 | 15,881,000 | 15,038,000 | 14,038,000 | 13,666,000 | 12,672,000 | 12,149,000 | 11,402,000 | 11,453,000 | 11,371,000 | 11,748,000 |
| Inventory turnover | 2.46 | 2.43 | 2.49 | 2.56 | 2.64 | 2.52 | 2.47 | 2.41 | 2.58 | 2.39 | 2.43 | 2.49 | 2.56 | 2.47 | 2.53 | 2.50 | 2.60 | 2.71 | 2.88 | 3.03 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $41,437,000K ÷ $16,827,000K
= 2.46
The inventory turnover ratio for Caterpillar Inc has been showing a downward trend over the past few years, indicating a decreasing efficiency in managing its inventory. The ratio decreased from 3.03 on March 31, 2020, to 2.46 on December 31, 2024.
A decreasing inventory turnover ratio could suggest potential issues such as overstocking, slow-moving inventory, or difficulties in converting inventory into sales. It may also indicate inefficiencies in production, procurement, or distribution processes.
Caterpillar Inc may need to reassess its inventory management strategies to improve efficiency, reduce holding costs, and enhance liquidity. This could involve optimizing inventory levels, streamlining supply chain processes, and aligning production with demand to boost inventory turnover and overall operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024