Newell Brands Inc (NWL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	8,328,000	9,151,000	9,683,000	10,087,000	10,216,400
Inventory	US$ in thousands	1,531,000	2,203,000	2,087,000	1,638,000	1,606,000
Inventory turnover		5.44	4.15	4.64	6.16	6.36

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,328,000K ÷ $1,531,000K
= 5.44

The inventory turnover of Newell Brands Inc has shown some fluctuations over the past five years. The company's inventory turnover ratio in 2023 was 3.78, indicating that the company effectively sold and replaced its inventory approximately 3.78 times during the year. Compared to the previous year, the inventory turnover ratio increased from 3.01 in 2022 to 3.78 in 2023, suggesting a more efficient management of inventory.

However, when looking at the trend over the five-year period, there has been a slight decline in the inventory turnover ratio from 4.04 in 2019 to 3.78 in 2023. This may indicate that the company is taking longer to sell its inventory or is carrying more inventory on hand compared to previous years.

Overall, while the recent uptick in inventory turnover is a positive sign, it would be advisable for Newell Brands Inc to closely monitor and potentially optimize its inventory management practices to ensure efficient turnover and minimize carrying costs.