Pentair PLC (PNR)
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 | 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 | 1,905,700 | 1,897,200 | 1,906,200 | 1,891,400 |
| Inventory | US$ in thousands | 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 | 377,400 | 390,300 | 396,700 | 421,800 |
| Inventory turnover | 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 | 5.05 | 4.86 | 4.81 | 4.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,775,800K ÷ $677,700K
= 4.10
The inventory turnover ratio for Pentair plc has fluctuated over the past eight quarters, ranging from a low of 3.49 in Q4 2022 to a high of 3.90 in Q2 2022. Overall, the company has maintained a relatively stable inventory turnover ratio, with an average of approximately 3.67 over the period analyzed.
A higher inventory turnover ratio typically indicates that a company is efficiently managing its inventory by selling products quickly and minimizing excess stock. Conversely, a lower ratio may suggest slower sales and potential issues with inventory management, such as overstocking.
Pentair's inventory turnover ratios over the past eight quarters have generally been above 3.0, indicating that the company has been able to effectively sell and replenish its inventory during each period. It is crucial for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023