Keysight Technologies Inc (KEYS)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,470,000 | 3,341,000 | 3,371,000 | 3,255,000 | 2,991,000 |
| Inventory | US$ in thousands | 1,022,000 | 985,000 | 858,000 | 777,000 | 757,000 |
| Inventory turnover | 3.40 | 3.39 | 3.93 | 4.19 | 3.95 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,470,000K ÷ $1,022,000K
= 3.40
Keysight Technologies Inc's inventory turnover has shown fluctuations over the past five years. In 2024, the inventory turnover ratio was 3.40, which is slightly higher compared to the previous year. However, it is lower than the ratios in 2022 and 2021. This indicates that the company's inventory is being sold and replaced at a slower rate in 2024.
A decreasing inventory turnover ratio could imply inefficiencies in managing and selling inventory, potentially leading to excess or obsolete inventory levels. On the other hand, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient inventory management and strong sales.
Overall, while analyzing the inventory turnover ratio of Keysight Technologies Inc, it is essential to assess the company's inventory management practices and sales strategies to understand the factors influencing the turnover ratio fluctuations over the years.
Peer comparison
Oct 31, 2024