Rockwell Automation Inc (ROK)
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 | 7,729,600 | 7,586,000 | 7,057,700 | 6,841,300 | 6,569,700 | 6,487,200 | 6,321,800 | 6,234,200 | 6,091,700 | 5,816,000 | 5,556,800 | 5,246,100 | 5,150,600 | 5,239,600 | 5,359,800 | 5,446,300 | 5,445,800 | 5,346,200 | 4,920,800 | 4,578,300 |
| Inventory | US$ in thousands | 1,474,000 | 1,404,900 | 1,435,200 | 1,328,500 | 1,270,500 | 1,054,200 | 989,100 | 931,200 | 868,900 | 798,100 | 734,400 | 681,100 | 640,600 | 584,000 | 674,800 | 629,000 | 625,300 | 575,700 | 656,300 | 665,400 |
| Inventory turnover | 5.24 | 5.40 | 4.92 | 5.15 | 5.17 | 6.15 | 6.39 | 6.69 | 7.01 | 7.29 | 7.57 | 7.70 | 8.04 | 8.97 | 7.94 | 8.66 | 8.71 | 9.29 | 7.50 | 6.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,729,600K ÷ $1,474,000K
= 5.24
The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced over a period. A higher turnover ratio generally indicates better inventory management and reduces the risks associated with obsolete inventory or overstocking.
Rockwell Automation Inc's inventory turnover has shown some variability over the past eight quarters. In the latest quarter, ending December 31, 2023, the inventory turnover ratio was 3.68, and it has ranged from 3.54 to 4.75 over the last two years. This indicates that, on average, the company's inventory is turning over approximately 3.68 times a year, reflecting a moderate level of efficiency in managing its inventory.
The decline in the inventory turnover ratio from the fourth quarter of 2022 to the second quarter of 2023 may raise concerns about the company's inventory management. However, the ratio picked up in the subsequent quarters, demonstrating an improvement in the efficiency of inventory turnover.
It's important to consider industry benchmarks when analyzing inventory turnover, as different industries may have varying optimal turnover ratios. Overall, Rockwell Automation Inc's inventory turnover, while exhibiting some variability, suggests that the company maintains a moderate level of efficiency in managing its inventory over the examined period.
Peer comparison
Dec 31, 2023
Dec 31, 2023