Stanley Black & Decker Inc (SWK)
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 | 15,442,900 | 14,472,900 | 13,612,200 | 12,617,000 | 12,663,300 | 12,284,900 | 11,747,500 | 10,998,700 | 10,189,100 | 9,932,600 | 9,624,700 | 9,107,400 | 8,652,300 | 8,607,500 | 8,744,900 | 9,286,600 | 9,636,700 | 9,557,900 | 9,557,900 | 9,557,900 |
| Inventory | US$ in thousands | 4,738,600 | 4,977,700 | 5,282,900 | 5,659,500 | 5,861,100 | 6,347,200 | 6,635,500 | 6,267,700 | 5,419,900 | 4,134,400 | 3,679,500 | 3,137,400 | 2,638,900 | 2,874,700 | 2,753,400 | 2,532,400 | 2,255,000 | 2,743,500 | 2,863,200 | 2,791,600 |
| Inventory turnover | 3.26 | 2.91 | 2.58 | 2.23 | 2.16 | 1.94 | 1.77 | 1.75 | 1.88 | 2.40 | 2.62 | 2.90 | 3.28 | 2.99 | 3.18 | 3.67 | 4.27 | 3.48 | 3.34 | 3.42 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,442,900K ÷ $4,738,600K
= 3.26
The inventory turnover ratio for Stanley Black & Decker Inc has shown fluctuations over the past 5 years. The ratio measures how many times the company sells and replaces its inventory over a specific period.
Looking at the trend, we observe that the inventory turnover ratio has generally been increasing since March 2020. This indicates that the company is managing its inventory more efficiently and selling its products at a faster rate.
The ratio hit a peak of 4.27 in March 2020, which suggests that the company was selling its inventory more than four times during that quarter. This was followed by a slight decrease in subsequent quarters but still staying above 3, which is a positive sign for the company’s operations.
Analyzing the latest figure for December 2023, with an inventory turnover of 3.26, we see a slight decrease from the previous quarter but still maintaining a healthy turnover rate. This indicates that the company continues to efficiently manage its inventory levels.
Overall, based on the inventory turnover ratios, it appears that Stanley Black & Decker Inc has been improving its inventory management practices, leading to better turnover rates and potentially improved profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023