Sensata Technologies Holding NV (ST)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,875,662	2,954,708	2,890,043	2,850,167	2,831,378	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
Inventory	US$ in thousands	614,455	673,506	708,299	720,628	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
Inventory turnover		4.68	4.39	4.08	3.96	3.97	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,875,662K ÷ $614,455K
= 4.68

The inventory turnover ratio for Sensata Technologies Holding NV has fluctuated over the period examined. As of December 31, 2024, the company's inventory turnover stood at 4.68 times, indicating that its inventory was sold and replaced almost five times during the year.

Analyzing the trend over the past few years, we observe that there was a decline in inventory turnover from March 31, 2022, to June 30, 2022. However, from June 30, 2022, to September 30, 2024, the ratio showed a general increasing trend, reaching its peak at 4.68 by the end of December 31, 2024.

This indicates that Sensata Technologies Holding NV has been managing its inventory efficiently, as a higher turnover ratio suggests that the company is selling its goods relatively quickly and replenishing its stock efficiently. An improving inventory turnover ratio may also indicate effective inventory management practices and better demand forecasting.

However, a close eye should be kept on this ratio in the future to ensure that inventory levels are optimal and not excessive, as this could tie up capital and lead to increased holding costs. Overall, a consistently healthy inventory turnover ratio is a positive indicator of operational efficiency and effective management of working capital for Sensata Technologies Holding NV.