Deere & Company (DE)
Inventory turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,754,000 | 5,175,000 | 4,683,000 | 3,569,000 | 27,945,000 |
| Inventory | US$ in thousands | 7,093,000 | 8,160,000 | 8,495,000 | 6,781,000 | 4,999,000 |
| Inventory turnover | 0.81 | 0.63 | 0.55 | 0.53 | 5.59 |
October 27, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,754,000K ÷ $7,093,000K
= 0.81
Inventory turnover measures how effectively a company is managing its inventory by showing how many times a company's inventory is sold and replaced over a specific period. For Deere & Company, the inventory turnover has been fluctuating over the past five years.
In 2024, the inventory turnover was relatively low at 0.81, indicating that Deere & Company took approximately 0.81 years to sell and replace its inventory during that year. This could signal potential inefficiencies in managing inventory levels or challenges in matching supply with demand.
Compared to the previous years, the inventory turnover was even lower in 2023 at 0.63 and in 2022 at 0.55, suggesting a declining trend in inventory management efficiency during those years. However, in 2021 and 2020, there were significant increases in the inventory turnover to 0.53 and 5.59, respectively.
The sharp increase in 2020 could be attributed to various factors, such as changes in sales patterns, operational improvements, or adjustments in inventory management strategies. The significant fluctuations in inventory turnover over the years may indicate shifts in demand, production, or supply chain dynamics impacting Deere & Company's inventory management.
Overall, Deere & Company's inventory turnover has varied significantly in recent years, highlighting the importance of closely monitoring and effectively managing the company's inventory to optimize operational performance and financial results.
Peer comparison
Oct 27, 2024