Pentair PLC (PNR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,300,800 | 3,334,700 | 3,568,700 | 3,049,400 | 2,494,800 |
| Inventory | US$ in thousands | 610,900 | 677,700 | 790,000 | 562,900 | 420,000 |
| Inventory turnover | 5.40 | 4.92 | 4.52 | 5.42 | 5.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,300,800K ÷ $610,900K
= 5.40
The inventory turnover ratio for Pentair PLC has shown a slight decrease over the years, dropping from 5.94 in December 2020 to 5.42 in December 2021, and further declining to 4.52 in December 2022. However, there was a small improvement in December 2023 as the ratio increased to 4.92, before rising again to 5.40 in December 2024.
Overall, Pentair PLC's inventory turnover indicates how efficiently the company is managing its inventory levels and converting them into sales. The downward trend in the inventory turnover ratio may suggest potential issues with inventory management or slowing sales. It is important for the company to analyze the reasons behind these fluctuations and take necessary steps to optimize its inventory levels to improve operational efficiency and profitability.
Peer comparison
Dec 31, 2024