Keysight Technologies Inc (KEYS)

Inventory turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Cost of revenue (ttm)	US$ in thousands	3,470,000	3,378,000	3,367,000	3,343,000	3,341,000	3,428,000	3,441,000	3,437,000	3,377,000	3,275,000	3,223,000	3,221,000	3,255,000	3,285,000	3,216,000	3,061,000	2,991,000	2,969,000	3,025,000	3,139,000
Inventory	US$ in thousands	1,022,000	1,026,000	1,020,000	1,024,000	985,000	975,000	948,000	909,000	858,000	837,000	810,000	804,000	777,000	770,000	774,000	760,000	757,000	778,000	756,000	737,000
Inventory turnover		3.40	3.29	3.30	3.26	3.39	3.52	3.63	3.78	3.94	3.91	3.98	4.01	4.19	4.27	4.16	4.03	3.95	3.82	4.00	4.26

October 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,470,000K ÷ $1,022,000K
= 3.40

Inventory turnover measures how efficiently a company manages its inventory by showing how many times it sells and replaces its average inventory balance during a period. Keysight Technologies Inc's inventory turnover has fluctuated over the past 2 years, ranging from 3.26 to 4.27. The trend has been generally stable, with a slight decline in recent quarters.

The average inventory turnover for the past four quarters is approximately 3.71, indicating that Keysight Technologies Inc has turned over its inventory roughly 3.71 times during a year. A decreasing trend in inventory turnover may suggest inefficiencies in the management of inventory or potential overstocking issues.

Comparing Keysight Technologies Inc's inventory turnover ratio to industry benchmarks or historical data for the company can provide further insights into its performance and operational effectiveness. Additionally, analyzing inventory turnover in conjunction with other financial metrics can offer a more comprehensive view of the company's overall financial health.