GE HealthCare Technologies Inc. (GEHC)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,317,000 | 6,117,000 | |||
| Inventory | US$ in thousands | 1,960,000 | 2,128,000 | 2,264,000 | 2,256,000 | 2,155,000 |
| Inventory turnover | 2.20 | 2.87 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,317,000K ÷ $1,960,000K
= 2.20
The inventory turnover ratio for GE HealthCare Technologies Inc. has fluctuated over the past year, ranging from 2.20 to 2.87. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during a period the inventory is sold and replaced.
A higher inventory turnover ratio generally indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management and effective sales strategies. On the other hand, a lower ratio could suggest excess inventory or potential issues with sales and demand.
In the case of GE HealthCare Technologies Inc., the decreasing trend in the inventory turnover ratio from 2.87 in September 2023 to 2.20 in December 2023 may suggest that the company took longer to sell and replace its inventory in the fourth quarter of the year. This could be due to various factors such as seasonal demand fluctuations, changes in market conditions, or inventory management practices.
Overall, monitoring and analyzing the inventory turnover ratio can provide valuable insights into the company's operational efficiency and inventory management practices, helping stakeholders assess the company's performance and identify areas for improvement.
Peer comparison
Dec 31, 2023
Dec 31, 2023