Littelfuse Inc (LFUS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,899,370 | 1,917,470 | 1,628,350 | 1,230,780 | 1,243,540 |
| Inventory | US$ in thousands | 474,607 | 547,690 | 445,671 | 258,002 | 237,507 |
| Inventory turnover | 4.00 | 3.50 | 3.65 | 4.77 | 5.24 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,899,370K ÷ $474,607K
= 4.00
The inventory turnover ratio of Littelfuse Inc has fluctuated over the past five years. The ratio indicates how efficiently the company manages its inventory by measuring how many times it sells and replaces its inventory over a specific period.
In 2023, the inventory turnover was 4.00, showing a slight improvement from 2022 when it was 3.50. This suggests that Littelfuse Inc managed its inventory more effectively in 2023, selling and replacing its inventory more frequently.
Comparing 2023 to 2021 and 2020, the inventory turnover was lower in 2023. In 2021 and 2020, the company turned over its inventory 3.65 and 4.77 times, respectively. This could indicate that in 2023, Littelfuse Inc may have experienced challenges in efficiently managing its inventory compared to the previous years.
Furthermore, when comparing 2023 to 2019, the inventory turnover ratio has been declining steadily. In 2019, Littelfuse Inc had a higher inventory turnover of 5.24, indicating that the company was more efficient in managing its inventory in that year compared to 2023.
Overall, Littelfuse Inc should continue to monitor its inventory turnover ratio to ensure optimal inventory management and cost control to improve its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023