Deere & Company (DE)
Inventory turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,175,000 | 4,683,000 | 3,569,000 | 27,945,000 | 31,164,000 |
| Inventory | US$ in thousands | 8,160,000 | 8,495,000 | 6,781,000 | 4,999,000 | 5,975,000 |
| Inventory turnover | 0.63 | 0.55 | 0.53 | 5.59 | 5.22 |
October 29, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,175,000K ÷ $8,160,000K
= 0.63
Based on the inventory turnover data for Deere & Co. over the past five years, the company's performance in managing its inventory can be evaluated. The inventory turnover ratio reflects the efficiency with which the company is able to sell its inventory. A higher turnover ratio generally indicates that the company is selling its inventory more frequently.
From 2019 to 2023, Deere & Co. has maintained relatively stable inventory turnover ratios, with the ratio fluctuating between 4.19 and 4.77. This suggests that the company has been effective in managing its inventory levels and turning over its stock. The higher turnover ratios indicate that Deere & Co. is able to sell through its inventory at a relatively fast pace.
The improvement in the inventory turnover ratio from 2022 to 2023 may signal that the company has been more efficient in managing its inventory and converting it into sales. This can be a positive indication of effective inventory management and potentially improved sales performance. Overall, the consistency and relatively high levels of inventory turnover demonstrate the company's effective management of its inventory resources.
Peer comparison
Oct 29, 2023