nVent Electric PLC (NVT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,797,000 | 1,921,500 | 1,812,300 | 1,520,100 | 1,249,200 |
| Inventory | US$ in thousands | 360,300 | 441,300 | 346,700 | 321,900 | 235,200 |
| Inventory turnover | 4.99 | 4.35 | 5.23 | 4.72 | 5.31 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,797,000K ÷ $360,300K
= 4.99
nVent Electric PLC's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory levels by indicating the number of times a company's inventory is sold and replaced during a specific period.
In 2020, the inventory turnover ratio was 5.31, which means that the company sold and replaced its inventory approximately 5.31 times during the year. The ratio decreased to 4.72 in 2021, suggesting a slower rate of inventory turnover compared to the previous year. However, there was a slight improvement in 2022, with the ratio increasing to 5.23, indicating a better performance in managing inventory levels.
In 2023, the inventory turnover ratio decreased to 4.35, reflecting a lower rate of inventory turnover and potentially signaling inefficiencies in managing inventory levels. Nonetheless, in 2024, there was a slight improvement as the ratio increased to 4.99, suggesting a better performance in inventory management compared to the previous year.
Overall, nVent Electric PLC's inventory turnover ratio has shown some variability over the years, with fluctuations in the efficiency of managing inventory levels. It is important for the company to monitor and improve its inventory turnover to ensure optimal utilization of resources and maintain profitability.
Peer comparison
Dec 31, 2024