IDEX Corporation (IEX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,827,000 | 1,755,000 | 1,540,300 | 1,324,200 | 1,369,600 |
| Inventory | US$ in thousands | 420,800 | 470,900 | 370,400 | 289,900 | 293,467 |
| Inventory turnover | 4.34 | 3.73 | 4.16 | 4.57 | 4.67 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,827,000K ÷ $420,800K
= 4.34
Idex Corporation's inventory turnover has fluctuated over the past five years, as indicated by the values of 4.34, 3.73, 4.16, 4.57, and 4.67 in 2023, 2022, 2021, 2020, and 2019, respectively. The inventory turnover ratio measures the efficiency of the company in managing its inventory levels and converting them into sales. A higher inventory turnover ratio suggests that the company is selling its inventory quickly and efficiently.
From the data provided, we observe that Idex Corporation's inventory turnover ratio peaked at 4.67 in 2019 and has since experienced some fluctuations. The downward trend from 2019 to 2022 could indicate potential inefficiencies in managing inventory levels or slower sales growth during those periods. However, the increase in inventory turnover to 4.34 in 2023 suggests an improvement in inventory management efficiency compared to the previous year.
Overall, Idex Corporation appears to have a reasonably stable inventory turnover ratio over the five-year period, with fluctuations reflecting changes in sales volumes and inventory management practices. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023