Stanley Black & Decker Inc (SWK)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,851,300 | 11,683,100 | 12,663,300 | 10,423,000 | 9,566,700 |
| Inventory | US$ in thousands | 4,536,400 | 4,738,600 | 5,861,100 | 5,446,800 | 2,737,400 |
| Inventory turnover | 2.39 | 2.47 | 2.16 | 1.91 | 3.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,851,300K ÷ $4,536,400K
= 2.39
The inventory turnover ratio is a key financial metric used to assess how efficiently a company manages its inventory. In the case of Stanley Black & Decker Inc, the trend of the inventory turnover over the past five years has shown some fluctuation:
- As of December 31, 2020, the inventory turnover ratio was 3.49, indicating that the company turned over its inventory approximately 3.49 times during that year.
- By December 31, 2021, the inventory turnover decreased to 1.91, suggesting a decline in the efficiency of managing inventory.
- However, there was a slight improvement by December 31, 2022, with the inventory turnover ratio increasing to 2.16.
- The trend continued to improve by December 31, 2023, reaching a ratio of 2.47, showing further progress in inventory management.
- By December 31, 2024, the inventory turnover ratio decreased slightly to 2.39, but it still remained higher compared to previous years.
Overall, the inventory turnover ratio of Stanley Black & Decker Inc has shown some variability over the past five years, with periods of improvement and minor fluctuations. It is essential for the company to closely monitor and manage its inventory effectively to ensure optimal operational efficiency and profitability.
Peer comparison
Dec 31, 2024