Teledyne Technologies Incorporated (TDY)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,235,200	3,196,100	3,128,300	2,772,900	1,905,300
Inventory	US$ in thousands	914,400	917,700	890,700	752,900	347,300
Inventory turnover		3.54	3.48	3.51	3.68	5.49

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,235,200K ÷ $914,400K
= 3.54

Teledyne Technologies Incorporated's inventory turnover has shown a declining trend over the past five years, from 5.49 in December 2020 to 3.54 in December 2024. This indicates that the company is holding onto its inventory for a longer period before selling it. A decreasing inventory turnover may suggest inefficiencies in managing inventory levels, possible overstocking, or slower sales.

A lower inventory turnover ratio can tie up capital in inventory and increase storage costs, potentially impacting the company's liquidity and profitability. Management should closely monitor inventory levels, streamline operations, and improve demand forecasting to optimize inventory turnover and enhance overall efficiency. Further analysis of the company's supply chain management practices and inventory control systems may be necessary to address these declining trends.