Danaher Corporation (DHR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,753,000 | 22,531,000 | 21,159,000 | 17,865,000 | 14,140,700 |
| Inventory | US$ in thousands | 2,594,000 | 2,765,000 | 2,767,000 | 2,292,000 | 1,628,000 |
| Inventory turnover | 7.23 | 8.15 | 7.65 | 7.79 | 8.69 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,753,000K ÷ $2,594,000K
= 7.23
The inventory turnover of Danaher Corp. has exhibited a declining trend over the past five years, decreasing from 4.87 in 2019 to 3.80 in 2023. This suggests that the company is taking longer to sell its inventory, which may indicate inefficiencies in managing inventory levels or challenges in accurately forecasting demand. A lower inventory turnover ratio could also imply that the company is tying up more capital in inventory, potentially affecting cash flow and profitability. It is important for Danaher Corp. to analyze the root causes of this decreasing trend and implement strategies to improve inventory turnover in order to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2023