Resideo Technologies Inc (REZI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,638,000 | 5,698,000 | 5,289,000 | 4,886,000 | 4,868,000 |
| Inventory | US$ in thousands | 941,000 | 975,000 | 740,000 | 672,000 | 671,000 |
| Inventory turnover | 5.99 | 5.84 | 7.15 | 7.27 | 7.25 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,638,000K ÷ $941,000K
= 5.99
Inventory turnover for Resideo Technologies Inc has fluctuated over the past five years, ranging from a low of 4.72 in 2022 to a high of 5.79 in 2021. This ratio indicates how efficiently the company is managing its inventory by showing the number of times inventory is sold and replaced during the year.
A higher inventory turnover generally indicates that the company is efficiently selling its products and replenishing its inventory. In this case, the inventory turnover has been consistently above 4 times per year over the past five years, suggesting that Resideo Technologies Inc has been effectively managing its inventory levels.
However, it is worth noting that the slight fluctuations in the ratio over the years may indicate changes in the company's sales patterns, production processes, or inventory management strategies. Overall, a relatively stable and healthy inventory turnover ratio suggests that Resideo Technologies Inc is effectively managing its inventory to support its sales activities.