ITT Inc (ITT)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 2,383,400 2,175,700 2,065,400 1,865,500 1,695,600
Inventory US$ in thousands 591,200 575,400 533,900 430,900 360,500
Inventory turnover 4.03 3.78 3.87 4.33 4.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,383,400K ÷ $591,200K
= 4.03

The inventory turnover for ITT Inc has shown a slight decline over the years, decreasing from 4.70 in December 2020 to 4.03 in December 2024. This indicates that the company is selling its inventory less frequently compared to the previous years. A lower inventory turnover could suggest overstocking or slower sales, which may tie up working capital and potentially lead to increased holding costs. ITT Inc should closely monitor its inventory management practices to optimize turnover and improve overall efficiency in its operations.