Eaton Corporation PLC (ETN)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 14,762,000 | 14,576,000 | 14,437,000 | 14,195,000 | 13,865,000 | 13,545,000 | 13,338,000 | 13,378,000 | 13,293,000 | 13,245,000 | 12,958,000 | 12,290,000 | 12,408,000 | 12,786,000 | 13,247,000 | 14,067,000 | 14,338,000 | 14,452,000 | 14,537,000 | 14,511,000 |
| Inventory | US$ in thousands | 3,739,000 | 3,713,000 | 3,670,000 | 3,604,000 | 3,430,000 | 3,428,000 | 3,445,000 | 3,317,000 | 2,969,000 | 2,802,000 | 2,668,000 | 2,399,000 | 2,109,000 | 2,096,000 | 2,138,000 | 2,346,000 | 2,805,000 | 2,901,000 | 2,853,000 | 2,897,000 |
| Inventory turnover | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | 6.10 | 6.20 | 6.00 | 5.11 | 4.98 | 5.10 | 5.01 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,762,000K ÷ $3,739,000K
= 3.95
Eaton Corporation plc's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.87 to 4.04. The company's inventory turnover ratio measures how efficiently it is managing its inventory by indicating the number of times the company sells and replenishes its inventory within a certain period.
With a current inventory turnover of 3.95 in Q4 2023, the company continues to effectively control its inventory levels. However, it is essential to note that a higher inventory turnover ratio typically indicates a more efficient use of inventory and potentially higher sales volume.
Comparing with the previous quarters, the inventory turnover ratio has remained consistent, suggesting a consistent approach to managing inventory levels. This stability can be seen as a positive sign of effective inventory management practices within the company.
Further analysis of the company's inventory turnover ratio trends over time and in comparison to industry benchmarks could provide deeper insights into Eaton Corporation plc's inventory management efficiency and overall financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023