Itron Inc (ITRI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,835,400 | 1,614,570 | 1,799,340 | 1,930,110 | 2,167,840 |
| Inventory | US$ in thousands | 283,686 | 228,701 | 165,799 | 182,377 | 227,896 |
| Inventory turnover | 6.47 | 7.06 | 10.85 | 10.58 | 9.51 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,835,400K ÷ $283,686K
= 6.47
Itron Inc.'s inventory turnover has demonstrated a declining trend over the past five years. The inventory turnover ratio decreased from 7.68 in 2019 to 5.15 in 2023. This indicates that, on average, the company is selling its inventory at a slower pace. A lower inventory turnover may suggest potential issues such as overstocking, slow-moving inventory, or inefficiencies in managing inventory levels.
The declining trend in inventory turnover could potentially impact the company's cash flow and profitability. It may lead to increased carrying costs, storage expenses, and potential write-offs of obsolete inventory. Management should closely monitor and analyze the reasons behind the decreasing inventory turnover to implement appropriate strategies to improve efficiency in inventory management.
It is important for investors and stakeholders to keep an eye on Itron Inc.'s inventory turnover ratio and assess whether the company is effectively managing its inventory levels to support sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023