Stanley Black & Decker Inc (SWK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,389,900 | 12,663,300 | 10,189,100 | 8,344,600 | 8,107,400 |
| Inventory | US$ in thousands | 4,738,600 | 5,861,100 | 5,419,900 | 2,638,900 | 2,255,000 |
| Inventory turnover | 3.46 | 2.16 | 1.88 | 3.16 | 3.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,389,900K ÷ $4,738,600K
= 3.46
Inventory turnover is a key ratio that indicates how efficiently a company manages its inventory. Stanley Black & Decker Inc's inventory turnover has shown fluctuations over the past five years, ranging from 1.88 to 3.60.
In 2023, the inventory turnover ratio improved to 3.46 compared to the previous year, indicating that the company was more efficient in selling its inventory relative to the cost of goods sold. This is a positive sign as higher inventory turnover generally suggests effective inventory management and less risk of obsolescence.
However, the inventory turnover ratio in 2023 is still lower than in 2019, when it was 3.60. This indicates that there may be room for further improvement in inventory management efficiency in order to match or exceed previous levels.
Overall, an increasing trend in inventory turnover is a positive signal for the company's financial health, as it suggests smoother inventory processes and potentially higher profitability.
Peer comparison
Dec 31, 2023