PHINIA Inc. (PHIN)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,045,000 | 2,972,000 | 2,897,000 |
| Inventory | US$ in thousands | 444,000 | 486,000 | 489,000 |
| Inventory turnover | 6.86 | 6.12 | 5.92 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,045,000K ÷ $444,000K
= 6.86
Based on the provided data, the inventory turnover for PHINIA Inc. has shown a consistent increase over the period from March 31, 2024, to December 31, 2024. The inventory turnover ratio increased from 5.92 times in March 31, 2024, to 6.12 times in September 30, 2024, and further to 6.86 times by December 31, 2024.
A high inventory turnover ratio indicates that the company is selling its inventory more frequently within a specific period, which is generally seen as a positive sign. It suggests that PHINIA Inc. is effectively managing its inventory levels and converting its stock into sales at a faster rate, potentially leading to better liquidity and operational efficiency.
The consistent upward trend in the inventory turnover ratio reflects positively on PHINIA Inc.'s operational performance and efficiency in managing its inventory assets. This trend indicates that the company has been able to control its inventory levels effectively, reducing the risk of obsolete stock and improving its overall financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024