GE HealthCare Technologies Inc. (GEHC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,271,000 | 4,369,000 | 4,332,000 | 4,317,000 | 4,317,000 | 6,117,000 |
| Inventory | US$ in thousands | 1,939,000 | 2,124,000 | 2,023,000 | 1,989,000 | 1,960,000 | 2,128,000 |
| Inventory turnover | 2.20 | 2.06 | 2.14 | 2.17 | 2.20 | 2.87 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,271,000K ÷ $1,939,000K
= 2.20
The inventory turnover ratio for GE HealthCare Technologies Inc. has shown a slight decline over the period analyzed. In September 2023, the inventory turnover was 2.87, indicating that the company was able to sell and replace its inventory approximately 2.87 times during that period. However, this ratio decreased to 2.20 by December 2023, and further declined to 2.17 by March 2024. The trend continued with ratios of 2.14 in June 2024, 2.06 in September 2024, and a slight increase back to 2.20 by December 2024.
A decreasing inventory turnover ratio may suggest that GE HealthCare Technologies Inc. is holding onto its inventory for a longer period, which could tie up capital and lead to potential obsolescence or declining demand for its products. It is important for the company to manage its inventory efficiently to avoid unnecessary costs and ensure optimal use of resources. Further analysis of the company's inventory management practices and sales strategies may be needed to address the declining trend in inventory turnover.
Peer comparison
Dec 31, 2024
Dec 31, 2024