nVent Electric PLC (NVT)
Inventory turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,809,400 | 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 |
| Inventory | US$ in thousands | 366,200 | 445,800 | 441,100 | 360,200 | 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 |
| Inventory turnover | 7.67 | 6.42 | 6.36 | 7.52 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,809,400K ÷ $366,200K
= 7.67
nVent Electric PLC's inventory turnover has exhibited fluctuations over the past few years. The inventory turnover ratio measures the efficiency of the company in managing its inventory levels. A higher inventory turnover indicates that the company is selling its products quickly, which is generally favorable as it reduces the risk of obsolete inventory.
Looking at the trend, nVent Electric PLC's inventory turnover has ranged from 5.18 to 12.41 over the past five years. The ratio has shown an overall increasing trend since December 2019, indicating improved efficiency in managing inventory levels.
The company achieved its highest inventory turnover of 12.41 in December 2019, suggesting that it was selling its inventory more than 12 times during that period. However, the turnover ratio decreased in subsequent periods before showing signs of improvement in recent quarters.
A sustained inventory turnover ratio above 5 indicates that nVent Electric PLC is effectively managing its inventory levels and converting inventory into sales efficiently. Analysts may further investigate the reasons behind the fluctuations in inventory turnover to assess the company's inventory management practices and overall operational efficiency.
Peer comparison
Sep 30, 2024
Sep 30, 2024