Teledyne Technologies Incorporated (TDY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,720,400	4,605,700	4,201,300	2,692,200	2,775,800
Inventory	US$ in thousands	917,700	890,700	752,900	347,300	393,400
Inventory turnover		5.14	5.17	5.58	7.75	7.06

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,720,400K ÷ $917,700K
= 5.14

Teledyne Technologies Inc's inventory turnover has been relatively stable over the past five years, ranging from 3.48 to 5.49 times. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times inventory is sold and replaced during a certain period.

A lower inventory turnover ratio suggests that the company is holding onto inventory for a longer period before selling it, which may indicate overstocking or slow-moving inventory. Conversely, a higher ratio indicates that inventory is being sold quickly, which can be a positive sign of efficient inventory management.

In the case of Teledyne Technologies Inc, the inventory turnover has slightly decreased from 5.49 in 2021 to 3.48 in 2023. This decline may be a cause for concern as it could imply potential inefficiencies in inventory management, such as overstocking or difficulties in selling products. Further analysis of the company's inventory management practices and industry trends would be beneficial to understand the reasons behind this decrease and identify potential areas for improvement.