Resideo Technologies Inc (REZI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,860,000 | 4,546,000 | 4,604,000 | 4,285,000 | 3,758,000 |
| Inventory | US$ in thousands | 1,237,000 | 941,000 | 975,000 | 740,000 | 672,000 |
| Inventory turnover | 3.93 | 4.83 | 4.72 | 5.79 | 5.59 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,860,000K ÷ $1,237,000K
= 3.93
Based on the provided data for Resideo Technologies Inc's inventory turnover over the five-year period from December 31, 2020, to December 31, 2024, we observe fluctuations in the efficiency of managing inventory.
- In December 2020, the inventory turnover ratio stood at 5.59, indicating that the company turned over its inventory approximately 5.59 times during that year.
- By December 2021, the inventory turnover ratio improved slightly to 5.79, suggesting a slightly more efficient management of inventory.
- However, in December 2022, there was a decline in the inventory turnover ratio to 4.72, potentially signaling a challenge in managing inventory levels or sales performance.
- The trend continued into December 2023, with the inventory turnover ratio slightly increasing to 4.83 but remaining below the levels seen in the initial years.
- The inventory turnover ratio saw a further decrease to 3.93 by December 2024, indicating a continued challenge in efficiently managing inventory turnover.
Overall, the trend in inventory turnover for Resideo Technologies Inc suggests some fluctuations over the years, with periods of improvement followed by declines. It would be important for the company to analyze the reasons behind these fluctuations to manage inventory effectively and optimize the use of resources.