nVent Electric PLC (NVT)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,862,400 | 2,806,900 | 2,707,200 | 2,548,400 | 2,461,200 | 2,426,800 | 2,414,600 | 2,385,200 | 2,308,800 | 2,202,200 | 2,066,800 | 1,941,500 | 2,050,600 | 1,939,200 | 1,934,400 | 2,963,700 | 2,455,700 | 2,174,800 | 1,844,600 | 846,400 |
| Inventory | US$ in thousands | 445,800 | 441,100 | 441,300 | 464,900 | 475,300 | 366,500 | 346,700 | 374,500 | 375,400 | 348,300 | 321,900 | 301,400 | 275,400 | 237,900 | 235,200 | 238,900 | 247,500 | 249,000 | 244,700 | 259,100 |
| Inventory turnover | 6.42 | 6.36 | 6.13 | 5.48 | 5.18 | 6.62 | 6.96 | 6.37 | 6.15 | 6.32 | 6.42 | 6.44 | 7.45 | 8.15 | 8.22 | 12.41 | 9.92 | 8.73 | 7.54 | 3.27 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,862,400K ÷ $445,800K
= 6.42
nVent Electric PLC has shown a relatively stable trend in its inventory turnover ratio over the past few quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory over a period.
nVent Electric PLC's inventory turnover ratio has ranged from 3.27 to 12.41 over the past twenty quarters. There is a general increasing trend in the inventory turnover ratio from September 2019 to June 2021, peaking at 12.41 in December 2020, which indicates that the company was managing its inventory very efficiently during that period.
However, the inventory turnover ratio decreased in the subsequent quarters, reaching a low of 3.27 in March 2021, before gradually increasing again. The ratio ranged between 6.13 and 6.96 from December 2022 to March 2023 before declining to 5.18 in June 2023. There was a slight recovery in the inventory turnover ratio in the following quarters, with the ratio fluctuating around 6.
Overall, nVent Electric PLC has maintained a relatively healthy inventory turnover ratio, indicating efficient management of its inventory levels. However, fluctuations in the ratio over the quarters may warrant further investigation into the company's inventory management practices and the overall demand for its products.
Peer comparison
Jun 30, 2024
Jun 30, 2024