Regal Beloit Corporation (RRX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,842,800 | 4,183,400 | 3,548,200 | 2,724,600 | 2,098,300 |
| Inventory | US$ in thousands | 1,227,500 | 1,274,200 | 1,336,900 | 1,106,600 | 690,300 |
| Inventory turnover | 3.13 | 3.28 | 2.65 | 2.46 | 3.04 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,842,800K ÷ $1,227,500K
= 3.13
Based on the data provided, Regal Beloit Corporation's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio indicates the number of times inventory is sold and replaced within a specific period.
In 2020, the inventory turnover ratio was 3.04, which means the company sold and replaced its inventory approximately 3.04 times during that year. Subsequently, in 2021, the turnover ratio decreased to 2.46, indicating a decrease in the efficiency of inventory management.
However, in 2022, there was a slight improvement in the turnover ratio to 2.65, suggesting a better management of inventory levels. This improvement continued in 2023, with the ratio increasing to 3.28, reflecting a more efficient management of inventory turnover.
In the most recent year, 2024, the inventory turnover ratio slightly decreased to 3.13 but still remained relatively higher compared to the previous years. This could indicate that the company is striking a balance between maintaining optimal inventory levels and ensuring efficient turnover.
Overall, the trend in Regal Beloit Corporation's inventory turnover ratios over the past five years shows some fluctuations, with improvements and declines along the way. The company should continue to monitor and manage its inventory levels effectively to optimize its operations and financial performance.
Peer comparison
Dec 31, 2024