Flowserve Corporation (FLS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,123,560 | 3,022,740 | 2,620,820 | 2,491,340 | 2,611,360 |
| Inventory | US$ in thousands | 837,254 | 879,937 | 803,198 | 678,287 | 667,228 |
| Inventory turnover | 3.73 | 3.44 | 3.26 | 3.67 | 3.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,123,560K ÷ $837,254K
= 3.73
Flowserve Corporation's inventory turnover has shown a moderate fluctuation over the past five years, ranging from a low of 3.26 in December 2022 to a high of 3.91 in December 2020. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced within a certain period.
A lower inventory turnover ratio, such as in December 2022, may suggest inefficiencies in inventory management, which could lead to higher carrying costs and potential obsolescence risks. Conversely, a higher ratio, as seen in December 2020 and 2024, indicates a quicker inventory turnover, potentially reflecting effective inventory control and sales management.
Overall, Flowserve Corporation's inventory turnover has remained relatively stable within the range of 3.26 to 3.91, indicating a consistent level of efficiency in managing its inventory over the analyzed period. This metric suggests that the company has been able to balance its inventory levels effectively to support sales while avoiding excessive inventory buildup.
Peer comparison
Dec 31, 2024