Mettler-Toledo International Inc (MTD)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,547,023	1,589,214	1,607,481	1,615,633	1,611,667	1,616,228	1,611,168	1,591,889	1,546,377	1,495,212	1,436,831	1,342,087	1,284,146	1,250,875	1,231,936	1,251,061	1,267,441	1,262,128	1,258,910	1,256,453
Inventory	US$ in thousands	385,865	375,959	394,959	427,549	441,694	451,320	463,321	446,490	414,543	381,457	350,159	321,341	297,611	292,329	299,746	292,110	274,285	280,978	286,347	282,087
Inventory turnover		4.01	4.23	4.07	3.78	3.65	3.58	3.48	3.57	3.73	3.92	4.10	4.18	4.31	4.28	4.11	4.28	4.62	4.49	4.40	4.45

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,547,023K ÷ $385,865K
= 4.01

The inventory turnover of Mettler-Toledo International, Inc. has shown a generally improving trend over the past eight quarters. From Q1 2022 to Q4 2023, the inventory turnover ratio has increased from 3.57 to 4.01, indicating that the company is selling through its inventory more efficiently.

The upward trend in inventory turnover suggests that Mettler-Toledo International, Inc. is managing its inventory levels effectively and is able to convert its inventory into sales at a faster pace. This can be a positive sign of operational efficiency and effective inventory management.

However, it is important to note that the ratio fluctuates slightly from quarter to quarter, which could be influenced by various factors such as seasonality, demand fluctuations, or changes in business operations. Overall, the progressive increase in inventory turnover ratio indicates that the company is improving its performance in managing and selling inventory over time.