Regal Beloit Corporation (RRX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,887,300 | 4,001,100 | 2,894,900 | 2,244,300 | 2,480,100 |
| Inventory | US$ in thousands | 1,274,200 | 1,336,900 | 1,192,400 | 690,300 | 678,400 |
| Inventory turnover | 3.84 | 2.99 | 2.43 | 3.25 | 3.66 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,887,300K ÷ $1,274,200K
= 3.84
Regal Rexnord Corp's inventory turnover has exhibited variability over the past five years, with levels ranging from 2.46 to 3.50. The company's inventory turnover ratio increased from 2.46 in January 2022 to 3.28 in December 2023, indicating a more efficient management of inventory during this period. However, it is important to note that the inventory turnover ratio saw a decrease in December 2022 compared to the previous year, which suggests a potential inefficiency in inventory management during that period.
Overall, Regal Rexnord Corp's inventory turnover ratio has generally been within a stable range, with fluctuations being observed primarily due to changes in sales volume and inventory management practices. An increasing inventory turnover ratio typically indicates that the company is selling its inventory at a faster rate, which can be a positive sign of effective operations and financial health. On the other hand, a declining inventory turnover ratio may signal excess inventory or potential inefficiencies that require closer attention and management.
Peer comparison
Dec 31, 2023