Sensata Technologies Holding NV (ST)

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	2,792,825	2,764,368	2,770,944	2,725,439	2,712,048	2,658,096	2,592,483	2,564,165	2,542,434	2,532,496	2,433,829	2,187,987	2,119,044	2,065,586	2,090,241	2,253,033	2,267,433	2,254,514	2,257,938	2,265,212
Inventory	US$ in thousands	713,485	683,646	660,082	658,562	644,875	675,862	656,736	641,709	588,231	551,628	503,641	468,446	451,005	438,188	488,807	514,274	506,678	502,939	490,123	484,136
Inventory turnover		3.91	4.04	4.20	4.14	4.21	3.93	3.95	4.00	4.32	4.59	4.83	4.67	4.70	4.71	4.28	4.38	4.48	4.48	4.61	4.68

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,792,825K ÷ $713,485K
= 3.91

Sensata Technologies Holding Plc's inventory turnover has displayed a consistent trend over the past eight quarters. The inventory turnover ratios have ranged from 3.91 to 4.21, with no significant fluctuations. This stability indicates that the company efficiently manages its inventory levels and effectively converts them into sales. Although there was a slight decrease in inventory turnover in Q4 2023 compared to the preceding quarters, overall, the company maintains a commendable efficiency in managing its inventory. An average inventory turnover ratio of around 4 over the observed period reflects a healthy balance between stocking an adequate level of inventory and ensuring a quick turnover to generate sales revenue.