Teledyne Technologies Incorporated (TDY)

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	3,284,600	3,226,900	3,200,200	3,225,000	3,196,100	3,195,500	3,184,100	3,166,400	3,128,300	3,156,600	3,158,500	3,033,000	2,772,900	2,436,900	2,107,700	1,905,200	1,905,300	1,916,800	1,946,000	1,949,000
Inventory	US$ in thousands	914,400	964,800	965,700	933,200	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
Inventory turnover		3.59	3.34	3.31	3.46	3.48	3.32	3.28	3.33	3.51	3.78	3.84	3.79	3.68	2.92	2.43	5.81	5.49	5.25	4.96	4.86

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,284,600K ÷ $914,400K
= 3.59

Teledyne Technologies Incorporated has shown fluctuations in its inventory turnover ratio over the reported periods. The inventory turnover ratio measures how effectively a company manages its inventory by assessing how many times during a given period the company sells and replaces its inventory.

From March 31, 2020, to December 31, 2020, Teledyne's inventory turnover increased steadily from 4.86 to 5.49, indicating a more efficient management of inventory during this period. However, starting from June 30, 2021, the inventory turnover ratio experienced a significant decline to as low as 2.43 by that date, suggesting potential issues such as excessive inventory levels or slow inventory turnover.

Subsequently, there was a gradual recovery in the inventory turnover ratio, reaching 3.84 by June 30, 2022. However, the ratio remained below the levels seen in 2020. Throughout the remaining reported periods up to December 31, 2024, the inventory turnover ratio fluctuated between 3.28 and 3.59, demonstrating a mix of improvements and challenges in managing inventory efficiently.

Overall, Teledyne's inventory turnover ratio has shown variability, possibly indicating fluctuations in sales, changes in inventory management practices, or shifts in customer demand. It would be essential for the company to continue monitoring its inventory turnover to ensure optimal levels and efficiency in its operations.