Resideo Technologies Inc (REZI)
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 | 4,882,000 | 4,678,000 | 4,511,000 | 4,522,000 | 4,558,000 | 4,563,000 | 4,614,000 | 4,667,000 | 4,608,000 | 4,537,000 | 4,429,000 | 4,306,000 | 4,285,000 | 4,305,000 | 4,217,000 | 3,914,000 | 3,758,000 | 3,692,000 | 3,637,000 | 3,790,000 |
| Inventory | US$ in thousands | 1,237,000 | 1,197,000 | 1,188,000 | 929,000 | 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 |
| Inventory turnover | 3.95 | 3.91 | 3.80 | 4.87 | 4.84 | 4.70 | 4.61 | 4.63 | 4.73 | 4.74 | 4.56 | 4.67 | 5.79 | 6.06 | 6.17 | 5.75 | 5.59 | 5.97 | 5.92 | 5.65 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,882,000K ÷ $1,237,000K
= 3.95
The inventory turnover of Resideo Technologies Inc has shown fluctuations over the past few years. The trend indicates a general decline in the inventory turnover ratio from around 5.65 in March 2020 to 3.95 in December 2024. This decline suggests that the company is taking longer to sell its inventory, which may indicate issues with inventory management, changing customer demand, or potentially an increase in obsolete or slow-moving inventory.
While a decreasing inventory turnover ratio could be a sign of inefficiency, it is essential to consider industry norms and the company's specific business model when interpreting this ratio. A lower turnover ratio could also be a strategic decision by the company to hold more inventory due to supply chain disruptions, seasonality, or other factors affecting the business.
Further analysis of Resideo Technologies Inc's inventory management practices, supply chain efficiency, sales trends, and industry benchmarks would provide more insights into the implications of the declining inventory turnover ratio and help determine any actions the company may need to take to improve its inventory management efficiency.