GE Vernova LLC (GEV)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 28,748,000 | 28,145,000 | 28,643,000 | 28,436,000 |
| Inventory | US$ in thousands | 8,266,000 | 8,109,000 | 8,859,000 | 7,199,000 |
| Inventory turnover | 3.48 | 3.47 | 3.23 | 3.95 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,748,000K ÷ $8,266,000K
= 3.48
To analyze the inventory turnover of GE Vernova LLC over the period from December 31, 2023, to September 30, 2024, we observe fluctuations in the ratio.
The inventory turnover ratio measures how efficiently a company manages its inventory by evaluating how many times the inventory is sold and replaced within a specific period. A higher ratio indicates that inventory is being sold quickly, which is generally favorable.
On December 31, 2023, the inventory turnover ratio was 3.95, indicating that GE Vernova LLC converted its inventory nearly 4 times during that period. This suggests a relatively efficient management of inventory.
However, the ratio decreased to 3.23 on March 31, 2024, reflecting a slight decline in the pace of inventory turnover. This may indicate either a buildup of excess inventory or a slowdown in sales.
By June 30, 2024, the ratio improved to 3.47, showing a slight recovery and increased efficiency in managing inventory compared to the previous period.
On September 30, 2024, the inventory turnover ratio remained relatively stable at 3.48, suggesting that GE Vernova LLC continued to maintain a consistent pace of inventory turnover.
In conclusion, while the inventory turnover ratio fluctuated slightly during the analyzed period, it generally indicates that GE Vernova LLC efficiently manages its inventory levels, ensuring a balanced approach between stocking enough inventory to meet demand and avoiding excesses that could tie up capital. It is essential for the company to monitor and optimize its inventory turnover to support its overall operational efficiency and financial performance.
Peer comparison
Sep 30, 2024
Sep 30, 2024