Dover Corporation (DOV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,282,340 | 7,317,870 | 6,795,090 | 5,934,280 | 4,515,460 |
| Inventory | US$ in thousands | 1,225,450 | 1,366,610 | 1,191,100 | 835,804 | 806,141 |
| Inventory turnover | 5.94 | 5.35 | 5.70 | 7.10 | 5.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,282,340K ÷ $1,225,450K
= 5.94
Dover Corp.'s inventory turnover has shown a fluctuating trend over the past five years. The ratio has ranged from a low of 3.98 in 2022 to a high of 5.60 in 2019. A higher inventory turnover ratio indicates that the company is managing its inventory more efficiently, turning over its inventory more frequently within a given period.
In 2023, the inventory turnover ratio improved to 4.37, indicating that Dover Corp. was able to sell its inventory and replace it faster compared to the previous year. This suggests better inventory management and potentially a more agile supply chain.
However, it is important to note that inventory turnover ratios can vary by industry, so it is essential to compare Dover Corp.'s ratio with industry benchmarks to assess its performance relative to its peers. Overall, a higher inventory turnover ratio is generally favorable as it signifies efficient inventory management and may indicate a lower risk of obsolescence or holding excess inventory.
Peer comparison
Dec 31, 2023