Danaher Corporation (DHR)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	9,669,000	8,091,000	8,567,000	9,368,000	9,856,000	12,216,000	12,422,000	12,336,000	12,522,000	12,297,000	12,088,000	11,879,000	11,501,000	11,102,000	10,889,700	10,513,500	9,808,800	9,167,600	8,738,800	8,573,200
Inventory	US$ in thousands	2,330,000	2,678,000	2,671,000	2,645,000	2,594,000	3,024,000	3,183,000	3,383,000	3,110,000	3,236,000	3,257,000	3,072,000	2,767,000	2,737,000	2,547,000	2,424,000	2,292,000	2,421,700	2,592,900	2,575,000
Inventory turnover		4.15	3.02	3.21	3.54	3.80	4.04	3.90	3.65	4.03	3.80	3.71	3.87	4.16	4.06	4.28	4.34	4.28	3.79	3.37	3.33

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,669,000K ÷ $2,330,000K
= 4.15

Based on the inventory turnover data provided for Danaher Corporation, we can observe fluctuations in the efficiency of inventory management over time.

The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. A higher turnover ratio indicates that the company is selling its inventory more effectively.

From March 31, 2020, to December 31, 2024, Danaher's inventory turnover ratio ranged from 3.02 to 4.34. In general, a turnover ratio above 4 is considered a positive sign of efficient inventory management.

The inventory turnover ratio showed an increasing trend from March 31, 2020, to December 31, 2021, peaking at 4.34. However, there was a slight decrease in the ratio in the following periods. This fluctuation could be attributed to changes in sales volumes, production efficiency, or inventory management practices.

The average inventory turnover ratio over this period was approximately 3.79. It indicates that, on average, Danaher turned over its inventory about 3.79 times a year.

Overall, Danaher's inventory turnover appears to demonstrate effective management of inventory levels, but there may be opportunities for further improvement to sustain or enhance this efficiency in the future.