GE Aerospace (GE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,308,000 | 22,939,000 | 55,535,000 | 43,378,000 | 57,871,000 |
| Inventory | US$ in thousands | 9,763,000 | 8,284,000 | 14,891,000 | 15,847,000 | 15,890,000 |
| Inventory turnover | 2.49 | 2.77 | 3.73 | 2.74 | 3.64 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $24,308,000K ÷ $9,763,000K
= 2.49
Based on the provided data, GE Aerospace's inventory turnover has shown fluctuations over the years.
- In December 31, 2020, the inventory turnover was 4.81, indicating that the company was able to sell and replace its inventory nearly 5 times during the year. This suggests efficient inventory management.
- However, the inventory turnover decreased significantly to 0.78 by December 31, 2021, which may indicate excess inventory or slower sales relative to the amount of inventory held.
- In December 31, 2022, the inventory turnover improved slightly to 1.00, but it still remained relatively low compared to previous years.
- By December 31, 2023, the inventory turnover further increased to 1.24, showing a positive trend in inventory management efficiency.
- Yet, by December 31, 2024, the inventory turnover dropped to 0.52, signifying a potential issue with excess inventory or challenges in selling products.
Overall, the fluctuating inventory turnover ratios indicate varying levels of efficiency in managing and selling inventory over the years, suggesting that GE Aerospace may need to focus on improving inventory management practices to optimize operations and profitability.
Peer comparison
Dec 31, 2024