Flowserve Corporation (FLS)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 4,042,140 3,454,650 3,316,730 3,529,750 3,551,540
Inventory US$ in thousands 879,937 803,198 678,287 667,228 660,837
Inventory turnover 4.59 4.30 4.89 5.29 5.37

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,042,140K ÷ $879,937K
= 4.59

Flowserve Corp.'s inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher ratio suggests that the company is selling its inventory quickly.

In 2020, the inventory turnover ratio was 3.91, indicating that Flowserve Corp. was selling and replenishing its inventory about 3.91 times during the year. The ratio decreased to 3.67 in 2021 before further declining to 3.26 in 2022. However, in 2023, the ratio improved slightly to 3.46.

The decrease in inventory turnover from 2020 to 2022 may suggest that Flowserve Corp. had excess inventory or faced challenges in selling its products efficiently during those years. The slight improvement in 2023 is positive, but the company may still need to focus on optimizing its inventory management to increase turnover and enhance overall operational efficiency.


Peer comparison

Dec 31, 2023