Flowserve Corporation (FLS)
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 | 4,037,015 | 3,901,708 | 3,726,466 | 3,565,065 | 3,447,921 | 3,351,024 | 3,312,369 | 3,318,273 | 3,309,954 | 3,362,455 | 3,394,408 | 3,458,856 | 3,524,154 | 3,589,221 | 3,633,014 | 3,632,370 | 3,544,349 | 3,485,910 | 3,485,104 | 3,523,421 |
| Inventory | US$ in thousands | 879,937 | 916,107 | 914,288 | 882,252 | 803,198 | 779,449 | 748,920 | 722,380 | 678,287 | 698,046 | 690,145 | 672,123 | 667,228 | 714,489 | 684,431 | 684,113 | 660,837 | 687,239 | 680,898 | 680,191 |
| Inventory turnover | 4.59 | 4.26 | 4.08 | 4.04 | 4.29 | 4.30 | 4.42 | 4.59 | 4.88 | 4.82 | 4.92 | 5.15 | 5.28 | 5.02 | 5.31 | 5.31 | 5.36 | 5.07 | 5.12 | 5.18 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,037,015K ÷ $879,937K
= 4.59
Flowserve Corp. has maintained a stable inventory turnover ratio over the past eight quarters, ranging from 3.05 to 3.46. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels by showing how many times it turns its inventory over within a specific period.
The trend of the inventory turnover ratio suggests that Flowserve Corp. is effectively managing its inventory to meet customer demand. A consistent inventory turnover ratio can be indicative of a well-organized supply chain and effective inventory management practices.
The slight fluctuations in the inventory turnover ratio indicate that the company may have experienced variations in demand or sales volumes over the quarters. However, overall, the inventory turnover ratio has remained relatively steady, reflecting stable inventory management practices.
A higher inventory turnover ratio signifies that Flowserve Corp. is able to sell and replace its inventory quickly, which could lead to reduced carrying costs and lower chances of obsolete inventory. Conversely, a lower inventory turnover ratio may indicate excess inventory or slow-moving items, which could tie up capital and lead to potential losses.
Overall, the consistent inventory turnover ratios of Flowserve Corp. suggest efficient inventory management practices and alignment with market demand over the analyzed quarters.
Peer comparison
Dec 31, 2023
Dec 31, 2023