Teledyne Technologies Incorporated (TDY)

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	4,282,700	4,267,000	4,247,400	4,205,100	4,542,400	4,627,300	4,631,300	4,521,700	4,080,900	3,493,500	2,997,300	2,613,800	2,634,000	2,659,500	2,707,800	2,725,600	2,691,500	2,626,800	2,571,600	2,541,200
Inventory	US$ in thousands	917,700	962,000	970,600	951,700	890,700	834,100	821,500	801,300	752,900	833,200	867,200	328,000	347,300	365,400	392,300	401,100	393,400	404,400	390,400	393,000
Inventory turnover		4.67	4.44	4.38	4.42	5.10	5.55	5.64	5.64	5.42	4.19	3.46	7.97	7.58	7.28	6.90	6.80	6.84	6.50	6.59	6.47

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,282,700K ÷ $917,700K
= 4.67

Teledyne Technologies Inc's inventory turnover has been showing a consistent downward trend over the past eight quarters, indicating that the company is taking longer to sell its inventory. The inventory turnover ratio decreased from 3.51 in Q4 2022 to 3.48 in Q4 2023. This decline may suggest potential issues with inventory management, such as overstocking or slow-moving inventory.

While a lower inventory turnover ratio may indicate inefficiencies in inventory management, it is essential to consider the industry standards and the company's specific business model. Comparing Teledyne's inventory turnover ratio with industry benchmarks and competitors can provide a better context for interpretation.

Overall, the decreasing trend in inventory turnover for Teledyne Technologies Inc warrants further investigation to identify the underlying reasons and take appropriate corrective actions to optimize inventory levels and improve operational efficiency.