CNH Industrial N.V. (CNH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,350,000 | 16,838,000 | 16,578,000 | 14,098,000 | 21,480,000 |
| Inventory | US$ in thousands | 4,776,000 | 5,545,000 | 4,811,000 | 4,216,000 | 6,022,000 |
| Inventory turnover | 2.80 | 3.04 | 3.45 | 3.34 | 3.57 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,350,000K ÷ $4,776,000K
= 2.80
The inventory turnover of CNH Industrial N.V. has shown a fluctuating trend over the past five years. Starting at 3.57 times in December 31, 2020, it decreased slightly to 3.34 times by December 31, 2021. However, the ratio then increased to 3.45 times by December 31, 2022. Subsequently, the inventory turnover declined to 3.04 times on December 31, 2023, and further decreased to 2.80 times by December 31, 2024.
This downward trend in inventory turnover could suggest that CNH Industrial N.V. is taking longer to sell its inventory, which may indicate potential issues with inventory management or demand for its products. Lower inventory turnover can tie up cash flow in unsold goods and increase the risk of obsolescence. It is important for the company to closely monitor and optimize its inventory levels to improve efficiency and profitability.
Peer comparison
Dec 31, 2024