Johnson Controls International PLC (JCI)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 21,752,000 | 25,690,000 | 24,604,000 | 21,642,000 | 22,322,000 |
| Inventory | US$ in thousands | 1,774,000 | 1,872,000 | 2,665,000 | 2,057,000 | 1,773,000 |
| Inventory turnover | 12.26 | 13.72 | 9.23 | 10.52 | 12.59 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $21,752,000K ÷ $1,774,000K
= 12.26
Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory levels. It indicates how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio is generally preferred as it suggests that inventory is being managed effectively.
In the case of Johnson Controls International PLC, the inventory turnover ratio has fluctuated over the past five years. In the latest fiscal year ending September 30, 2024, the company's inventory turnover ratio was 12.26, which indicates that the company's inventory turned over approximately 12.26 times during that period. This is a slight decrease from the previous year's ratio of 13.72.
Looking back over the past five years, we observe some variability in the inventory turnover ratio of Johnson Controls International PLC. In fiscal year 2022, the ratio was 9.23, which was lower compared to the following year but improved in fiscal years 2021 and 2020.
Overall, despite the fluctuations in the inventory turnover ratio, Johnson Controls International PLC has maintained a relatively healthy turnover of its inventory. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management efficiency and performance.
Peer comparison
Sep 30, 2024