Newell Brands Inc (NWL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,034,000 | 5,780,000 | 6,625,000 | 7,293,000 | 6,306,000 |
| Inventory | US$ in thousands | 1,400,000 | 1,531,000 | 2,203,000 | 1,997,000 | 1,638,000 |
| Inventory turnover | 3.60 | 3.78 | 3.01 | 3.65 | 3.85 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,034,000K ÷ $1,400,000K
= 3.60
The inventory turnover ratio for Newell Brands Inc has fluctuated over the past five years. As of December 31, 2020, the company had an inventory turnover of 3.85, indicating that its inventory was sold and replaced approximately 3.85 times during the year. In the following year, the ratio decreased to 3.65, suggesting a slightly slower rate of inventory turnover.
However, in the subsequent year (December 31, 2022), the inventory turnover ratio decreased further to 3.01, signaling that the company took longer to sell and replace its inventory. This may indicate potential inefficiencies in managing inventory levels or challenges in sales.
By December 31, 2023, the inventory turnover ratio improved to 3.78, showing a recovery in the efficiency of inventory management. This indicates that the company was able to sell and replace its inventory more frequently during that period.
As of the most recent data available on December 31, 2024, the inventory turnover ratio decreased slightly to 3.60. While still a healthy turnover rate, this slight decline may warrant monitoring to ensure optimal inventory management practices.
Overall, Newell Brands Inc has maintained a relatively stable inventory turnover ratio over the five-year period, with some fluctuations that may reflect changes in sales volume, inventory management practices, or market conditions. Monitoring this ratio can help assess the company's operational efficiency and effectiveness in managing its inventory levels.
Peer comparison
Dec 31, 2024