Dover Corporation (DOV)
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 | 5,078,740 | 5,214,590 | 5,354,480 | 5,344,250 | 5,353,490 | 5,406,350 | 5,431,640 | 5,467,820 | 5,444,530 | 5,339,430 | 5,217,580 | 5,099,650 | 4,937,290 | 4,798,480 | 4,624,320 | 4,312,397 | 4,209,747 | 4,205,077 | 4,267,407 | 4,457,940 |
| Inventory | US$ in thousands | 1,144,840 | 1,214,270 | 1,238,810 | 1,245,660 | 1,225,450 | 1,279,780 | 1,396,260 | 1,405,420 | 1,366,610 | 1,407,800 | 1,381,610 | 1,322,350 | 1,191,100 | 1,055,830 | 977,831 | 900,607 | 835,804 | 838,539 | 885,972 | 852,075 |
| Inventory turnover | 4.44 | 4.29 | 4.32 | 4.29 | 4.37 | 4.22 | 3.89 | 3.89 | 3.98 | 3.79 | 3.78 | 3.86 | 4.15 | 4.54 | 4.73 | 4.79 | 5.04 | 5.01 | 4.82 | 5.23 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,078,740K ÷ $1,144,840K
= 4.44
Dover Corporation's inventory turnover has shown varying trends over the reporting periods provided. The inventory turnover ratio indicates how efficiently a company is managing its inventory and how quickly it is selling the goods.
From March 31, 2020, to December 31, 2020, the inventory turnover remained relatively stable, fluctuating between 4.82 and 5.04. This range suggests that the company was able to turn over its inventory approximately 5 times during this period. A higher turnover ratio generally indicates better inventory management.
However, there was a decline in the inventory turnover ratio from March 31, 2021, to June 30, 2022, with the ratio gradually decreasing from 4.79 to 3.78. This decline could imply that the company may have been holding onto its inventory for a longer period, which can tie up working capital and lead to potential obsolescence.
From September 30, 2022, to December 31, 2024, the inventory turnover ratio showed some fluctuations but generally remained within the range of 3.79 to 4.44. While the ratio improved slightly towards the end of the period, it still suggests that the company may be taking longer to sell its inventory compared to earlier periods.
Overall, the downward trend in inventory turnover from 2021 to 2022 followed by some stabilization and improvement thereafter indicates the importance of closely monitoring inventory levels and sales activity to optimize working capital and operational efficiency. Further analysis and comparison with industry peers would provide additional insights into Dover Corporation's inventory management performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024