GE Aerospace (GE)
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 | 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 | 97,514,000 | 79,281,000 | 84,252,000 | 61,541,000 |
| Inventory | US$ in thousands | 16,528,000 | 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 | 17,215,000 | 15,203,000 | 19,971,000 | 19,419,000 |
| Inventory turnover | 1.33 | 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 | 5.66 | 5.21 | 4.22 | 3.17 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,974,000K ÷ $16,528,000K
= 1.33
General Electric Co.'s inventory turnover has displayed fluctuations in recent quarters. The inventory turnover ratio provides insight into how efficiently a company is managing its inventory by indicating how many times during a period inventory is sold and replaced.
In Q4 2023, the inventory turnover ratio was 3.05, slightly higher compared to the previous quarter Q3 2023 and Q4 2022. This may suggest that General Electric Co. managed its inventory more efficiently during the last quarter of 2023.
Overall, the company's inventory turnover ratio has remained relatively consistent in the range of 3.02 to 3.32 over the past eight quarters. However, it is important to consider industry benchmarks and historical performance to assess the effectiveness of General Electric Co.'s inventory management.
A high inventory turnover ratio generally indicates effective inventory management, as it suggests that inventory is being sold quickly. On the other hand, a consistently low or declining inventory turnover ratio could indicate potential issues such as overstocking or slow-moving inventory.
Further analysis of General Electric Co.'s inventory turnover ratio in conjunction with other financial metrics and industry trends would provide a more comprehensive understanding of the company's performance in managing its inventory efficiently.
Peer comparison
Dec 31, 2023
Dec 31, 2023