Littelfuse Inc (LFUS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,403,230 | 1,462,420 | 1,506,980 | 1,308,000 | 944,523 |
| Inventory | US$ in thousands | 416,273 | 474,607 | 547,690 | 445,671 | 258,002 |
| Inventory turnover | 3.37 | 3.08 | 2.75 | 2.93 | 3.66 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,403,230K ÷ $416,273K
= 3.37
The inventory turnover ratio of Littelfuse Inc, calculated by dividing the cost of goods sold by the average inventory for a specific period, reflects how efficiently the company manages its inventory.
Looking at the trend over the past five years, we observe that the inventory turnover has fluctuated. At the end of 2020, the ratio was 3.66, indicating that the company sold and replenished its inventory approximately 3.66 times during the year.
However, the ratio decreased in the following years, reaching 2.93 in 2021, 2.75 in 2022, and then slightly increasing to 3.08 in 2023 and 3.37 in 2024.
The decreasing trend in inventory turnover from 2020 to 2022 may suggest that Littelfuse Inc faced challenges in effectively managing its inventory levels and sales. But the subsequent increase in the ratio in 2023 and 2024 could indicate improvements in inventory management efficiency.
Overall, the company may need to further evaluate its inventory management strategies to optimize inventory turnover and ensure efficient use of its resources.
Peer comparison
Dec 31, 2024