Knowles Cor (KN)
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 | 414,500 | 469,700 | 447,700 | 425,600 | 390,500 | 375,500 | 428,100 | 432,600 | 460,300 | 471,900 | 497,900 | 503,700 | 508,600 | 526,400 | 520,900 | 508,300 | 490,800 | 483,900 | 495,600 | 520,500 |
| Inventory | US$ in thousands | 118,000 | 124,900 | 190,100 | 203,400 | 127,000 | 184,100 | 191,900 | 208,600 | 169,500 | 194,600 | 188,800 | 177,000 | 153,100 | 155,700 | 162,400 | 142,300 | 130,100 | 160,100 | 162,500 | 161,200 |
| Inventory turnover | 3.51 | 3.76 | 2.36 | 2.09 | 3.07 | 2.04 | 2.23 | 2.07 | 2.72 | 2.42 | 2.64 | 2.85 | 3.32 | 3.38 | 3.21 | 3.57 | 3.77 | 3.02 | 3.05 | 3.23 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $414,500K ÷ $118,000K
= 3.51
Knowles Cor's inventory turnover ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company is managing its inventory by assessing how many times in a year its inventory is sold and replaced.
The trend shows a general decline in inventory turnover from 3.23 on March 31, 2020, to 3.51 on December 31, 2024. This indicates that the company took longer to sell its inventory as the ratio decreased. However, there were fluctuations within this trend, with the ratio reaching its highest point of 3.77 on December 31, 2020, and its lowest point of 2.07 on March 31, 2023.
A decreasing inventory turnover ratio could imply several scenarios such as overstocking, inefficient sales strategies, or changing customer demand patterns. On the other hand, an increasing ratio could suggest better inventory management practices or increased sales efficiency.
Overall, in-depth analysis of the company's inventory management practices and sales strategies would be required to determine the reasons behind the fluctuations in the inventory turnover ratio and if any corrective actions are needed to improve efficiency in managing inventory.
Peer comparison
Dec 31, 2024
Dec 31, 2024