ITT Inc (ITT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,383,400 | 2,313,900 | 2,285,400 | 2,249,500 | 2,175,700 | 2,158,900 | 2,136,400 | 2,093,600 | 2,065,400 | 2,000,600 | 1,948,000 | 1,903,900 | 1,865,500 | 1,894,000 | 1,827,000 | 1,711,100 | 1,695,600 | 1,696,700 | 1,776,700 | 1,913,500 |
| Inventory | US$ in thousands | 591,200 | 620,500 | 564,300 | 609,400 | 575,400 | 574,300 | 573,200 | 567,600 | 533,900 | 525,100 | 535,200 | 475,600 | 430,900 | 413,700 | 406,200 | 374,700 | 360,500 | 378,500 | 384,600 | 382,400 |
| Inventory turnover | 4.03 | 3.73 | 4.05 | 3.69 | 3.78 | 3.76 | 3.73 | 3.69 | 3.87 | 3.81 | 3.64 | 4.00 | 4.33 | 4.58 | 4.50 | 4.57 | 4.70 | 4.48 | 4.62 | 5.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,383,400K ÷ $591,200K
= 4.03
The inventory turnover of ITT Inc has shown a gradual decrease over the past few years, indicating potential inefficiencies in managing its inventory. The ratio decreased from 5.00 on March 31, 2020, to 3.73 on June 30, 2024. This suggests that the company is holding onto its inventory for a longer period of time before converting it into sales.
A lower inventory turnover can lead to increased carrying costs, storage expenses, and risk of obsolescence. It may also suggest possible overstocking or slowing sales, which could impact the company's liquidity and profitability.
ITT Inc should focus on improving its inventory management practices to optimize its working capital and streamline its operations. Strategies such as implementing just-in-time inventory systems, forecasting demand more accurately, and evaluating its product mix can help enhance inventory turnover and overall efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024