Dana Inc (DAN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,273,000 | 10,117,000 | 8,610,000 | 7,026,000 | 8,334,000 |
| Inventory | US$ in thousands | 1,676,000 | 1,609,000 | 1,564,000 | 1,149,000 | 1,193,000 |
| Inventory turnover | 6.13 | 6.29 | 5.51 | 6.11 | 6.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,273,000K ÷ $1,676,000K
= 6.13
Inventory turnover measures how efficiently a company is managing its inventory by indicating the number of times the company sells and replaces its inventory within a certain period. In the case of Dana Inc, the inventory turnover has ranged from 5.18 to 6.28 over the past five years.
A higher inventory turnover ratio typically indicates that the company is selling goods more quickly and efficiently, which can lead to better cash flow and lower holding costs. Thus, Dana Inc's inventory turnover ratios in the range of 5.18 to 6.28 suggest that the company is effectively managing its inventory levels over the years.
However, it is important to consider industry norms and historical trends within the company when interpreting inventory turnover ratios. A decreasing trend in inventory turnover could indicate possible issues such as overstocking or decreasing sales, while a significantly higher ratio could signify potential stockouts or lost sales opportunities due to insufficient inventory levels.
Overall, Dana Inc's inventory turnover ratios demonstrate consistent efficiency in managing its inventory, but further analysis in comparison to industry benchmarks and company-specific trends is recommended to gain a more comprehensive understanding of its inventory management performance.
Peer comparison
Dec 31, 2023