Mettler-Toledo International Inc (MTD)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,546,778	1,524,320	1,525,175	1,542,667	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
Inventory	US$ in thousands	342,274	375,813	366,395	373,670	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
Inventory turnover		4.52	4.06	4.16	4.13	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,546,778K ÷ $342,274K
= 4.52

The inventory turnover ratio of Mettler-Toledo International Inc has shown a gradual decline from 4.28 as of March 31, 2020, to 4.52 as of December 31, 2024. This ratio indicates how many times the company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio is generally preferred as it suggests that the company is efficiently managing its inventory levels.

However, the decreasing trend in Mettler-Toledo's inventory turnover may raise concerns about its inventory management. A declining inventory turnover ratio could indicate issues such as overstocking, obsolete inventory, or slowing sales. It may also suggest inefficiencies in production processes or supply chain management.

To improve its inventory turnover, the company may need to focus on optimizing its inventory levels, streamlining production processes, strengthening demand forecasting, and maintaining effective communication with suppliers and distributors. Regular monitoring and analysis of the inventory turnover ratio can help Mettler-Toledo International Inc identify potential issues and take proactive steps to enhance operational efficiency and financial performance.