Resideo Technologies Inc (REZI)
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 | 5,306,000 | 5,364,000 | 5,419,000 | 5,473,000 | 5,668,000 | 5,564,000 | 5,439,000 | 5,301,000 | 5,268,000 | 5,317,000 | 5,268,000 | 4,727,000 | 4,331,000 | 4,209,000 | 4,145,000 | 4,612,000 | 4,864,000 | 4,498,000 | 4,374,000 | |
| Inventory | US$ in thousands | 941,000 | 970,000 | 1,001,000 | 1,008,000 | 975,000 | 957,000 | 971,000 | 922,000 | 740,000 | 710,000 | 684,000 | 681,000 | 672,000 | 618,000 | 614,000 | 671,000 | 671,000 | 729,000 | 722,000 | 701,000 |
| Inventory turnover | 5.64 | 5.53 | 5.41 | 5.43 | 5.81 | 5.81 | 5.60 | 5.75 | 7.12 | 7.49 | 7.70 | 6.94 | 6.44 | 6.81 | 6.75 | 6.87 | 7.25 | 6.17 | 6.06 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,306,000K ÷ $941,000K
= 5.64
The inventory turnover ratio for Resideo Technologies Inc has remained relatively stable over the past eight quarters, ranging from 4.56 to 4.83. This indicates that, on average, the company is able to sell and replace its inventory approximately 4.6 to 4.8 times per year. A consistent inventory turnover ratio suggests effective inventory management and indicates that the company is efficiently managing its inventory levels.
While the slight fluctuations in the ratio quarter to quarter are normal, it is noteworthy that the ratio has generally stayed within a narrow range, reflecting the company's ability to control its inventory levels effectively. A higher inventory turnover ratio is generally preferred as it signifies that a company is able to sell its products quickly and efficiently.
Overall, Resideo Technologies Inc appears to have a healthy inventory turnover, indicating that it is managing its inventory efficiently and effectively in the given period.