GE Aerospace (GE)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,328,000 | 19,963,000 | 20,628,000 | 22,187,000 | 21,974,000 | 23,045,000 | 23,904,000 | 24,406,000 | 26,758,000 | 25,629,000 | 38,717,000 | 52,325,000 | 63,260,000 | 64,692,000 | 67,315,000 | 70,730,000 | 74,100,000 | 81,826,000 | 84,640,000 | 91,652,000 |
| Inventory | US$ in thousands | 9,763,000 | 9,718,000 | 9,469,000 | 17,603,000 | 8,284,000 | 17,020,000 | 16,789,000 | 16,198,000 | 14,891,000 | 17,536,000 | 17,553,000 | 16,570,000 | 15,847,000 | 16,790,000 | 17,016,000 | 16,530,000 | 15,890,000 | 14,925,000 | 15,251,000 | 15,457,000 |
| Inventory turnover | 1.26 | 2.05 | 2.18 | 1.26 | 2.65 | 1.35 | 1.42 | 1.51 | 1.80 | 1.46 | 2.21 | 3.16 | 3.99 | 3.85 | 3.96 | 4.28 | 4.66 | 5.48 | 5.55 | 5.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,328,000K ÷ $9,763,000K
= 1.26
The inventory turnover ratio for GE Aerospace has shown a gradual decline over the period from March 31, 2020, to December 31, 2024. The ratio started at 5.93 on March 31, 2020, indicating that the company was able to efficiently manage its inventory by selling and replenishing it almost 6 times within that year.
However, there was a steady decrease in the inventory turnover ratio, reaching 1.26 by June 30, 2024. This suggests that the company took longer to sell its inventory relative to the amount of inventory it held during that period.
A low inventory turnover ratio could indicate issues such as overstocking, obsolete inventory, or slowing sales. The company may need to review its inventory management practices to improve efficiency and avoid potential losses from holding excess inventory.
Overall, the declining trend in GE Aerospace's inventory turnover ratio highlights the need for closer monitoring of inventory levels and sales performance to optimize operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024