CNH Industrial N.V. (CNH)
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 | 13,332,000 | 14,700,000 | 15,642,000 | 16,412,000 | 16,805,000 | 17,008,000 | 17,015,000 | 16,909,000 | 16,594,000 | 18,816,000 | 18,189,000 | 17,553,000 | 17,180,000 | 6,510,000 | 8,236,000 | 9,634,000 | 11,152,000 | 20,806,000 | 20,643,000 | 21,280,000 |
| Inventory | US$ in thousands | 4,776,000 | 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 | 7,221,000 | 7,687,000 | 7,471,000 | 6,880,000 | 6,022,000 | 6,744,000 | 6,893,000 | 7,435,000 |
| Inventory turnover | 2.79 | 2.48 | 2.63 | 2.65 | 3.03 | 2.64 | 2.65 | 2.83 | 3.45 | 3.51 | 3.32 | 3.23 | 2.38 | 0.85 | 1.10 | 1.40 | 1.85 | 3.09 | 2.99 | 2.86 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,332,000K ÷ $4,776,000K
= 2.79
Inventory turnover for CNH Industrial N.V. has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The company's inventory turnover ratio started at 2.86 on March 31, 2020, and gradually increased to a peak of 3.51 on September 30, 2022. This indicates that the company was able to sell and replace its inventory more frequently during this period.
However, from March 31, 2023, to June 30, 2024, CNH Industrial N.V. experienced a decline in its inventory turnover ratio, reaching a low of 2.48 on September 30, 2024. This suggests that the company's ability to manage its inventory efficiently decreased during this period, potentially leading to excess inventory levels or slower sales.
Overall, while CNH Industrial N.V. demonstrated periods of effective inventory management with higher turnover ratios, there were also periods of inefficiency indicated by lower turnover ratios. It would be essential for the company to assess the reasons behind these fluctuations and work towards maintaining a consistent and optimal level of inventory turnover for improved operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024