Deere & Company (DE)
Inventory turnover
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 31,023,000 | 5,754,000 | 37,942,000 | 5,175,000 | 35,552,000 |
| Inventory | US$ in thousands | 7,199,000 | 7,093,000 | 8,160,000 | 8,160,000 | 8,495,000 |
| Inventory turnover | 4.31 | 0.81 | 4.65 | 0.63 | 4.19 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $31,023,000K ÷ $7,199,000K
= 4.31
Deere & Company's inventory turnover ratio indicates the efficiency with which the company manages its inventory. The trend analysis shows fluctuations in the inventory turnover ratio over the period analyzed.
Looking at the data, we observe that the inventory turnover ratio decreased significantly from 4.19 in October 31, 2022, to 0.63 in October 29, 2023, reflecting a substantial decline in inventory turnover efficiency. However, there was a notable recovery in the ratio to 4.65 by October 31, 2023, suggesting improved inventory management practices.
Subsequently, the ratio dropped again to 0.81 in October 27, 2024, indicating a decline in the efficiency of inventory turnover. Nevertheless, there was a moderate rebound to 4.31 by October 31, 2024, signaling enhanced management of inventory.
Overall, it is crucial for Deere & Company to further analyze the causes behind these fluctuations in inventory turnover to optimize its inventory management processes and ensure sustainable operational efficiency.
Peer comparison
Oct 31, 2024