IDEX Corporation (IEX)
Inventory turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,827,000 | 1,839,900 | 1,838,300 | 1,809,300 | 1,755,000 | 1,690,600 | 1,648,800 | 1,589,500 | 1,540,300 | 1,485,354 | 1,414,567 | 1,361,116 | 1,324,222 | 1,317,680 | 1,330,335 | 1,353,648 | 1,369,539 | 1,370,878 | 1,371,265 | 1,368,496 |
| Inventory | US$ in thousands | 420,800 | 446,600 | 482,500 | 497,600 | 470,900 | 455,300 | 457,400 | 428,500 | 370,400 | 353,924 | 360,079 | 304,636 | 289,900 | 302,410 | 324,931 | 340,581 | 293,467 | 303,494 | 301,006 | 298,327 |
| Inventory turnover | 4.34 | 4.12 | 3.81 | 3.64 | 3.73 | 3.71 | 3.60 | 3.71 | 4.16 | 4.20 | 3.93 | 4.47 | 4.57 | 4.36 | 4.09 | 3.97 | 4.67 | 4.52 | 4.56 | 4.59 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,827,000K ÷ $420,800K
= 4.34
Idex Corporation's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.60 to 4.34. The inventory turnover ratio indicates how efficiently the company is managing its inventory by showing how many times in a year the company sells and replaces its inventory.
A higher inventory turnover ratio typically suggests efficient inventory management, as the company is selling and restocking its inventory more frequently. In the case of Idex Corporation, the inventory turnover ratio has generally been above 3.5, indicating that the company is effectively managing its inventory levels.
However, it is also important to consider industry norms and company-specific factors when interpreting inventory turnover ratios. Comparing Idex Corporation's inventory turnover with industry averages or competitors' ratios can provide additional insights into the company's efficiency in managing inventory.
Overall, based on the data provided, Idex Corporation has maintained a stable and reasonably efficient inventory turnover, which suggests effective management of its inventory levels.
Peer comparison
Dec 31, 2023
Dec 31, 2023