Deere & Company (DE)
Inventory turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,387,000 | 5,109,000 | 5,152,000 | 5,001,000 | 4,592,000 | 4,542,000 | 3,777,000 | 3,644,000 | 3,520,000 | 3,557,000 | 10,100,000 | 16,133,000 | 22,614,000 | 27,945,000 | 28,331,000 | 29,367,000 | 30,868,000 | 31,164,000 | 30,690,000 | 30,928,000 |
| Inventory | US$ in thousands | 8,937,000 | 8,160,000 | 9,350,000 | 9,713,000 | 10,056,000 | 8,495,000 | 9,121,000 | 9,030,000 | 7,935,000 | 6,781,000 | 6,410,000 | 6,042,000 | 5,956,000 | 4,999,000 | 5,650,000 | 6,171,000 | 6,482,000 | 5,975,000 | 6,747,000 | 7,161,000 |
| Inventory turnover | 0.60 | 0.63 | 0.55 | 0.51 | 0.46 | 0.53 | 0.41 | 0.40 | 0.44 | 0.52 | 1.58 | 2.67 | 3.80 | 5.59 | 5.01 | 4.76 | 4.76 | 5.22 | 4.55 | 4.32 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,387,000K ÷ $8,937,000K
= 0.60
Deere & Co.'s inventory turnover has shown fluctuation over the past eight quarters, ranging from a low of 3.45 in Q2 2022 to a high of 4.65 in Q4 2023. The inventory turnover ratio measures how efficiently the company is managing its inventory by comparing the cost of goods sold to the average inventory level during a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as a positive sign as it reduces the risk of obsolescence and carrying costs.
The fluctuation in Deere & Co.'s inventory turnover ratio may be attributed to various factors such as changes in sales volume, production inefficiencies, inventory management practices, and industry demand. It is important for the company to closely monitor its inventory turnover ratio to ensure that it is optimized for its operations.
Overall, Deere & Co.'s inventory turnover has shown a generally positive trend, staying above 3.5 in most quarters and peaking at 4.65 in Q4 2023. This indicates that the company has been effectively managing its inventory levels and selling its products efficiently. However, the company should continue to monitor its inventory turnover ratio and strive to maintain a balance between having enough inventory to meet demand and avoiding excess inventory levels.
Peer comparison
Jan 28, 2024
Jan 28, 2024