Mettler-Toledo International Inc (MTD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,546,780 | 1,547,020 | 1,611,670 | 1,546,380 | 1,284,150 |
| Inventory | US$ in thousands | 342,274 | 385,865 | 441,694 | 414,543 | 297,611 |
| Inventory turnover | 4.52 | 4.01 | 3.65 | 3.73 | 4.31 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,546,780K ÷ $342,274K
= 4.52
The inventory turnover ratio for Mettler-Toledo International Inc has shown a decreasing trend over the past five years. In December 2020, the inventory turnover was 4.31 times, indicating that the company's inventory was sold and replaced approximately 4.31 times during the year. However, by December 2021, the ratio had decreased to 3.73 times, suggesting that the turnover of inventory had slowed down.
This trend continued into subsequent years with the inventory turnover ratios for December 2022, December 2023, and December 2024 being 3.65, 4.01, and 4.52 times, respectively. Despite a slight increase in 2023, the overall trend indicates that the company may be holding onto its inventory for longer periods before selling it.
A lower inventory turnover ratio may suggest inefficiencies in managing inventory, potential overstocking, or slowing sales. It could also indicate a need for improved inventory management practices to optimize the use of resources and maximize profitability. Further analysis of the factors contributing to this trend would be necessary to understand the implications for Mettler-Toledo International Inc's operational and financial performance.
Peer comparison
Dec 31, 2024