GE HealthCare Technologies Inc. (GEHC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,268,000 | 4,316,000 | 4,177,000 |
| Inventory | US$ in thousands | 1,939,000 | 1,960,000 | 2,155,000 |
| Inventory turnover | 2.20 | 2.20 | 1.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,268,000K ÷ $1,939,000K
= 2.20
The inventory turnover of GE HealthCare Technologies Inc. has shown a positive trend over the three-year period from December 31, 2022, to December 31, 2024. The inventory turnover ratio increased from 1.94 in 2022 to 2.20 in both 2023 and 2024. This indicates that the company is selling its inventory more efficiently, as it is taking less time to turn over its inventory into sales.
A higher inventory turnover ratio signifies that GE HealthCare Technologies Inc. is managing its inventory effectively by selling goods quicker and replenishing inventory faster. This can lead to reduced holding costs and a lower risk of inventory obsolescence. Overall, the improvement in inventory turnover is a positive indicator of the company's operational efficiency and effective management of inventory levels.
Peer comparison
Dec 31, 2024