Newell Brands Inc (NWL)

Inventory turnover

		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	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	8,325,000	7,932,000	7,939,000	8,069,000	8,403,000	8,686,000	8,978,000	9,170,000	9,106,000	9,579,000	9,382,000	8,898,000	10,091,000	11,564,100	11,489,300	11,478,700	9,986,800	18,438,900	17,636,900	17,126,500
Inventory	US$ in thousands	1,531,000	1,778,000	1,937,000	2,240,000	2,203,000	2,527,000	2,522,000	2,297,000	2,087,000	2,098,000	2,016,000	1,901,000	1,638,000	1,718,000	1,714,000	1,700,000	1,606,000	1,877,200	1,845,200	1,799,000
Inventory turnover		5.44	4.46	4.10	3.60	3.81	3.44	3.56	3.99	4.36	4.57	4.65	4.68	6.16	6.73	6.70	6.75	6.22	9.82	9.56	9.52

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,325,000K ÷ $1,531,000K
= 5.44

To analyze the inventory turnover of Newell Brands Inc, we look at the trend in inventory turnover ratios over the past eight quarters. The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period.

From Q1 2022 to Q4 2023, Newell Brands Inc's inventory turnover ratio has shown some variability. The ratio has fluctuated between 2.81 and 3.78 over this period. A higher inventory turnover ratio generally suggests more efficient management of inventory, as it indicates that the company is selling its products quickly.

In Q4 2023, the inventory turnover ratio was at 3.78, marking an improvement from the previous quarter and reaching the highest level in the past eight quarters. This increase may indicate that Newell Brands Inc is managing its inventory more effectively and selling products at a faster rate.

Overall, despite some fluctuations, Newell Brands Inc's inventory turnover ratio has shown a general upward trend in recent quarters, which could be a positive sign for the company's operational efficiency and financial performance.