Dana Inc (DAN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,408,000 | 9,655,000 | 9,393,000 | 8,108,000 | 6,485,000 |
| Inventory | US$ in thousands | 1,547,000 | 1,676,000 | 1,609,000 | 1,564,000 | 1,149,000 |
| Inventory turnover | 6.08 | 5.76 | 5.84 | 5.18 | 5.64 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,408,000K ÷ $1,547,000K
= 6.08
Inventory turnover for Dana Inc has been relatively stable over the past five years, ranging from 5.18 to 6.08. The inventory turnover ratio indicates how efficiently the company manages its inventory levels by showing how many times it sells and replaces its inventory during a specific period.
A higher inventory turnover ratio signifies that the company is selling its products quickly and efficiently, while a lower ratio may indicate overstocking or slow-moving inventory. In this case, Dana Inc has maintained a consistent level of inventory turnover, which suggests that the company effectively manages its inventory and maintains a good balance between stocking enough inventory to meet demand without excess or obsolescence.
Overall, the trend in Dana Inc's inventory turnover ratio demonstrates stability and efficiency in managing its inventory levels, which is a positive indicator of the company's operational performance. Further analysis could be done to compare these ratios with industry averages to gain a deeper understanding of Dana Inc's inventory management strategy.
Peer comparison
Dec 31, 2024