Gates Industrial Corporation plc (GTES)
Inventory turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,115,800 | 2,171,300 | 2,211,300 | 2,269,000 | 2,290,700 | 2,287,700 | 2,303,600 | 2,249,600 | 2,220,100 | 2,187,900 | 2,135,200 | 2,098,300 | 2,015,200 | 1,839,800 | 1,758,300 | 1,730,200 | 1,765,800 | 1,901,300 | 1,944,600 | 1,962,400 |
| Inventory | US$ in thousands | 696,500 | 677,200 | 647,200 | 646,100 | 644,400 | 659,100 | 656,200 | 686,600 | 695,500 | 718,300 | 682,600 | 650,500 | 588,500 | 536,000 | 508,200 | 486,400 | 498,800 | 484,400 | 475,100 | 507,800 |
| Inventory turnover | 3.04 | 3.21 | 3.42 | 3.51 | 3.55 | 3.47 | 3.51 | 3.28 | 3.19 | 3.05 | 3.13 | 3.23 | 3.42 | 3.43 | 3.46 | 3.56 | 3.54 | 3.93 | 4.09 | 3.86 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,115,800K ÷ $696,500K
= 3.04
The inventory turnover ratio for Gates Industrial Corporation plc has been relatively stable over the past few years, ranging between 3.04 and 4.09. This ratio indicates how many times a company sells and replaces its average inventory over a specific period, with higher ratios generally considered more favorable.
The trend shows a slight fluctuation in the inventory turnover ratio over the quarters, with some quarters showing a higher turnover than others. The lowest turnover was seen in the second quarter of 2022 at 3.05, while the highest turnover was achieved in the fourth quarter of 2019 at 4.09.
Overall, the company's inventory turnover remains within a reasonable range, suggesting efficient management of inventory levels. However, it would be essential to further investigate the reasons for the fluctuations in the ratio to ensure optimal inventory management practices.
Peer comparison
Jun 30, 2024
Jun 30, 2024