CNH Industrial N.V. (CNH)
Inventory turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 14,732,000 | 15,661,000 | 16,422,000 | 16,838,000 | 17,111,000 | 17,208,000 | 17,122,000 | 16,797,000 | 15,864,000 | 15,160,000 | 14,499,000 | 14,109,000 | 6,510,000 | 8,236,000 | 9,634,000 | 11,152,000 | 20,806,000 | 20,643,000 | 21,280,000 | 21,832,000 |
| Inventory | US$ in thousands | 5,930,000 | 5,951,000 | 6,189,000 | 5,545,000 | 6,447,000 | 6,411,000 | 5,983,000 | 4,811,000 | 5,362,000 | 5,473,000 | 5,427,000 | 4,216,000 | 7,687,000 | 7,471,000 | 6,880,000 | 6,022,000 | 6,744,000 | 6,893,000 | 7,435,000 | 7,082,000 |
| Inventory turnover | 2.48 | 2.63 | 2.65 | 3.04 | 2.65 | 2.68 | 2.86 | 3.49 | 2.96 | 2.77 | 2.67 | 3.35 | 0.85 | 1.10 | 1.40 | 1.85 | 3.09 | 2.99 | 2.86 | 3.08 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,732,000K ÷ $5,930,000K
= 2.48
The inventory turnover for CNH Industrial N.V. has varied over the past few years, ranging from a low of 0.85 in September 2021 to a high of 3.49 in December 2022.
In general, a higher inventory turnover indicates that the company is selling its inventory more efficiently. The trend for CNH Industrial N.V. shows some fluctuation in inventory turnover ratios, indicating potential changes in sales levels or inventory management practices.
It's noteworthy that the company's inventory turnover improved significantly from September 2021 to December 2022, suggesting that CNH Industrial N.V. was able to sell its inventory more rapidly during this period. However, in the most recent period of September 2024, the inventory turnover declined slightly from the peak in December 2022, which may warrant further investigation into potential reasons for this decrease.
Overall, analyzing inventory turnover ratios over time can provide insights into a company's operational efficiency and effectiveness in managing its inventory levels.
Peer comparison
Sep 30, 2024
Sep 30, 2024