Sensata Technologies Holding NV (ST)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,776,930	2,792,820	2,712,050	2,542,430	2,119,040
Inventory	US$ in thousands	614,455	713,485	644,875	588,231	451,005
Inventory turnover		4.52	3.91	4.21	4.32	4.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,776,930K ÷ $614,455K
= 4.52

The inventory turnover ratio for Sensata Technologies Holding NV has shown a slight decline over the past few years. As of December 31, 2020, the ratio stood at 4.70, indicating that the company was able to turn over its inventory approximately 4.70 times during that year.

Subsequently, the ratio decreased to 4.32 by December 31, 2021, and further declined to 4.21 by December 31, 2022. This trend continued with a ratio of 3.91 by December 31, 2023. However, there was a slight improvement to 4.52 by December 31, 2024.

Overall, the decreasing trend in inventory turnover may suggest potential inefficiencies in managing inventory or challenges in sales and production forecasting. Companies ideally aim for a balance in inventory turnover to avoid overstocking or stockouts, which can impact profitability and cash flow. Further analysis of the underlying factors driving these changes in inventory turnover would provide more insights into the company's operational performance.