Stanley Black & Decker Inc (SWK)
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 | 10,834,000 | 10,889,700 | 11,152,300 | 11,529,300 | 11,848,500 | 12,449,700 | 12,657,900 | 12,617,000 | 12,663,300 | 11,591,200 | 11,361,400 | 10,932,800 | 10,423,000 | 11,113,600 | 10,715,800 | 10,093,200 | 9,566,700 | 9,268,500 | 9,188,200 | 9,515,000 |
| Inventory | US$ in thousands | 4,536,400 | 4,630,000 | 4,562,400 | 4,693,300 | 4,738,600 | 4,977,700 | 5,282,900 | 5,659,500 | 5,861,100 | 6,347,200 | 6,635,500 | 6,267,700 | 5,446,800 | 4,134,400 | 3,679,500 | 3,137,400 | 2,737,400 | 2,874,700 | 2,753,400 | 2,532,400 |
| Inventory turnover | 2.39 | 2.35 | 2.44 | 2.46 | 2.50 | 2.50 | 2.40 | 2.23 | 2.16 | 1.83 | 1.71 | 1.74 | 1.91 | 2.69 | 2.91 | 3.22 | 3.49 | 3.22 | 3.34 | 3.76 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,834,000K ÷ $4,536,400K
= 2.39
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. A higher inventory turnover indicates that inventory is selling quickly and efficiently.
Analyzing the inventory turnover of Stanley Black & Decker Inc based on the provided data from March 31, 2020, to December 31, 2024, reveals fluctuations in the ratio over time. The inventory turnover ratio for the company decreased from 3.76 on March 31, 2020, to 2.39 on December 31, 2024. This indicates a declining trend in the efficiency of managing inventory during this period.
The trend shows that the company's inventory turnover peaked in the first half of 2020 but then gradually declined over the following years. A declining inventory turnover ratio may suggest issues such as overstocking, slow-moving inventory, or ineffective inventory management practices.
It is important for Stanley Black & Decker Inc to closely monitor its inventory turnover and take corrective actions to improve efficiency in managing inventory. This may include optimizing inventory levels, streamlining supply chain processes, and implementing better inventory management strategies to drive profitability and enhance overall operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024