Mettler-Toledo International Inc (MTD)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,547,020	1,611,670	1,546,380	1,284,150	1,267,440
Inventory	US$ in thousands	385,865	441,694	414,543	297,611	274,285
Inventory turnover		4.01	3.65	3.73	4.31	4.62

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,547,020K ÷ $385,865K
= 4.01

Inventory turnover measures how many times a company sells and replaces its inventory within a specific period. The trend of Mettler-Toledo International, Inc.'s inventory turnover over the past five years indicates a slight fluctuation.

In 2023, the inventory turnover ratio was 4.01, which means the company sold and replaced its inventory approximately 4.01 times during the year. This shows a slight improvement compared to the previous year, where the ratio was 3.65. However, compared to 2020 and 2019, the inventory turnover has decreased slightly from 4.31 and 4.62, respectively.

A higher inventory turnover ratio generally implies efficient inventory management, as the company is selling products quickly and restocking efficiently. On the other hand, a lower ratio may suggest overstocking or slow-moving inventory, potentially tying up capital and increasing holding costs.

Overall, although the inventory turnover ratios have seen some fluctuations, Mettler-Toledo International, Inc. seems to have maintained a relatively stable and efficient inventory management strategy over the past five years. Further analysis could be conducted to determine the underlying factors contributing to these fluctuations in the inventory turnover ratio.