TE Connectivity Ltd (TEL)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,096,000 | 12,950,000 | 11,949,000 | 11,168,000 | 10,979,000 |
| Inventory | US$ in thousands | 2,552,000 | 2,676,000 | 2,511,000 | 1,950,000 | 1,836,000 |
| Inventory turnover | 5.13 | 4.84 | 4.76 | 5.73 | 5.98 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,096,000K ÷ $2,552,000K
= 5.13
TE Connectivity Ltd's inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced within a specific period.
In 2023, the inventory turnover ratio was 5.13, which increased compared to the previous year but remained slightly below the five-year high. This suggests that TE Connectivity Ltd was able to sell and replace its inventory more efficiently in 2023.
However, the downward trend from 2019 to 2021, where the ratio decreased from 5.98 to 4.76, may indicate potential issues with managing inventory levels, such as overstocking or slow-moving inventory.
Overall, while the recent increase in inventory turnover is positive, it is important for TE Connectivity Ltd to monitor its inventory management closely to ensure optimal efficiency in the future.
Peer comparison
Sep 30, 2023