Ingersoll Rand Inc (IR)
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 | 3,993,900 | 3,923,000 | 3,863,800 | 3,744,900 | 3,590,700 | 3,530,800 | 3,401,100 | 3,297,400 | 3,163,900 | 3,010,000 | 2,881,800 | 2,832,200 | 2,640,600 | 1,964,600 | 1,657,300 | 1,335,200 | 1,239,200 | 1,603,400 | 1,655,100 | 1,679,300 |
| Inventory | US$ in thousands | 1,001,100 | 1,082,900 | 1,101,300 | 1,122,600 | 1,025,400 | 1,012,500 | 1,013,500 | 954,900 | 854,200 | 863,600 | 796,800 | 832,500 | 716,700 | 1,007,400 | 1,026,400 | 1,088,100 | 502,500 | 539,300 | 557,600 | 555,100 |
| Inventory turnover | 3.99 | 3.62 | 3.51 | 3.34 | 3.50 | 3.49 | 3.36 | 3.45 | 3.70 | 3.49 | 3.62 | 3.40 | 3.68 | 1.95 | 1.61 | 1.23 | 2.47 | 2.97 | 2.97 | 3.03 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,993,900K ÷ $1,001,100K
= 3.99
Ingersoll-Rand Inc's inventory turnover has shown a relatively stable trend over the past eight quarters, ranging from a low of 3.18 in Q2 2022 to a high of 3.99 in Q4 2023. The average inventory turnover for this period is approximately 3.47. This indicates that, on average, Ingersoll-Rand Inc's inventory is turned over approximately 3.47 times within a year.
A higher inventory turnover ratio generally implies efficient management of inventory, as the company is selling and replacing its inventory more quickly. The increasing trend in the inventory turnover ratio over the quarters may suggest improvements in the company's inventory management practices, such as better demand forecasting or streamlined supply chain operations.
However, it is important to note that a very high inventory turnover ratio could also indicate a shortage of inventory, potentially leading to missed sales opportunities. Therefore, while a rising trend in the inventory turnover ratio is generally positive, it is essential for Ingersoll-Rand Inc to strike a balance between efficient inventory turnover and maintaining adequate inventory levels to meet customer demand.
Peer comparison
Dec 31, 2023
Dec 31, 2023