Gates Industrial Corporation plc (GTES)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,049,700 | 2,211,300 | 2,303,600 | 2,135,200 | 1,758,300 |
| Inventory | US$ in thousands | 676,000 | 647,200 | 656,200 | 682,600 | 508,200 |
| Inventory turnover | 3.03 | 3.42 | 3.51 | 3.13 | 3.46 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,049,700K ÷ $676,000K
= 3.03
The inventory turnover for Gates Industrial Corporation plc has shown some fluctuation over the years. It decreased from 3.46 in December 31, 2020, to 3.13 in December 31, 2021, indicating a potential slowdown in the company's inventory management efficiency. However, there was a slight recovery in December 31, 2022, with a turnover of 3.51, suggesting efforts to improve inventory turnover. The rate dipped again to 3.42 by December 31, 2023, before decreasing further to 3.03 by December 31, 2024.
Overall, the inventory turnover ratio for Gates Industrial Corporation plc has remained around 3, indicating that, on average, the company sells and replaces its inventory approximately three times a year. The downward trend in the recent years may raise concerns about the company's ability to efficiently manage its inventory levels and meet demand effectively. Further analysis and comparison with industry peers may provide additional insights into the company's inventory management performance and potential areas for improvement.
Peer comparison
Dec 31, 2024