Dana Inc (DAN)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	10,273,000	10,298,000	10,354,000	10,263,000	10,117,000	9,874,000	9,342,000	8,887,000	8,610,000	8,382,000	8,174,000	7,281,000	7,026,000	4,988,000	5,112,000	6,318,000	6,442,000	8,299,000	8,095,000	7,604,000
Inventory	US$ in thousands	1,676,000	1,713,000	1,731,000	1,723,000	1,609,000	1,603,000	1,594,000	1,631,000	1,564,000	1,546,000	1,435,000	1,260,000	1,149,000	1,087,000	1,116,000	1,213,000	1,193,000	1,233,000	1,286,000	1,282,000
Inventory turnover		6.13	6.01	5.98	5.96	6.29	6.16	5.86	5.45	5.51	5.42	5.70	5.78	6.11	4.59	4.58	5.21	5.40	6.73	6.29	5.93

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,273,000K ÷ $1,676,000K
= 6.13

Dana Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 5.14 to 5.84. The average inventory turnover for this period is approximately 5.60. This indicates that, on average, Dana Inc sells and replaces its inventory about 5.60 times per year.

A higher inventory turnover generally signifies that a company is efficiently managing its inventory by rapidly converting it into sales. However, it is important to note that a very high inventory turnover may also indicate a shortage of inventory, potentially leading to lost sales opportunities.

Overall, Dana Inc's consistent inventory turnover indicates effective inventory management, ensuring the company maintains a healthy balance between holding enough inventory to meet demand while avoiding excess stock that could tie up capital.