Pentair PLC (PNR)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,671,800 | 2,697,700 | 2,734,500 | 2,756,100 | 2,775,800 | 2,924,200 | 2,994,200 | 3,015,900 | 3,036,500 | 2,891,700 | 2,819,100 | 2,714,500 | 2,597,800 | 2,448,100 | 2,334,800 | 2,202,900 | 2,110,600 | 1,928,700 | 1,866,200 | 1,910,800 |
| Inventory | US$ in thousands | 610,900 | 645,900 | 647,500 | 675,100 | 677,700 | 712,600 | 753,900 | 782,800 | 790,000 | 778,700 | 695,000 | 656,200 | 562,900 | 504,600 | 463,400 | 429,100 | 420,000 | 401,700 | 396,500 | 392,400 |
| Inventory turnover | 4.37 | 4.18 | 4.22 | 4.08 | 4.10 | 4.10 | 3.97 | 3.85 | 3.84 | 3.71 | 4.06 | 4.14 | 4.62 | 4.85 | 5.04 | 5.13 | 5.03 | 4.80 | 4.71 | 4.87 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,671,800K ÷ $610,900K
= 4.37
Based on the data provided, Pentair PLC's inventory turnover has exhibited fluctuations over the periods specified. The inventory turnover ratio indicates how efficiently the company manages its inventory levels by showing how many times it sells and replaces its inventory during a specific period.
Pentair's inventory turnover ranged from a low of 3.71 on September 30, 2022, to a high of 5.13 on March 31, 2021. Generally, a higher inventory turnover ratio is favorable as it suggests that the company is selling and replenishing its inventory at a faster rate.
The trend in Pentair's inventory turnover ratio shows some variability, with periods of increase and decrease. It is essential to monitor inventory turnover consistently to ensure optimal inventory management. A declining trend in inventory turnover may indicate overstocking, obsolete inventory, or potential sales issues, whereas a rising trend could suggest efficient inventory management.
By analyzing the inventory turnover ratio over time, Pentair PLC can assess the effectiveness of its inventory control policies, identify any potential issues in inventory management, and make informed decisions to optimize its inventory turnover for improved operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024