ITT Inc (ITT)
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 | 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 | 1,936,300 | 1,913,100 | 1,886,600 | 1,869,500 |
| Inventory | US$ in thousands | 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 | 392,900 | 414,600 | 421,400 | 396,200 |
| Inventory turnover | 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 | 4.93 | 4.61 | 4.48 | 4.72 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,175,700K ÷ $575,400K
= 3.78
ITT Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.64 to 4.00. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times inventory is sold and replaced within a specific period.
The declining trend in Q2 and Q1 of 2023, with ratios of 3.73 and 3.69 respectively, may suggest some inefficiency in managing inventory levels during those periods. However, the ratios improved in Q3 and Q4 of 2023, indicating a more efficient inventory turnover.
Overall, ITT Inc's inventory turnover ratios are within a fairly consistent range, indicating that the company is effectively managing its inventory levels and turning over inventory at a reasonable rate. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023