TE Connectivity Ltd (TEL)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,431,000 | 13,096,000 | 12,950,000 | 11,949,000 | 11,168,000 |
| Inventory | US$ in thousands | 2,517,000 | 2,552,000 | 2,676,000 | 2,511,000 | 1,950,000 |
| Inventory turnover | 4.94 | 5.13 | 4.84 | 4.76 | 5.73 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,431,000K ÷ $2,517,000K
= 4.94
TE Connectivity Ltd's inventory turnover has fluctuated over the past five years. The company's inventory turnover ratio in 2024 stood at 4.94, a decrease from the previous year's ratio of 5.13. This decline may indicate that TE Connectivity Ltd took longer to sell its inventory in 2024 compared to 2023. However, despite the decrease, the company's inventory turnover remains relatively stable, staying within the range of 4.76 to 5.73 over the past five years. While a higher inventory turnover ratio is generally viewed more positively as it suggests efficient management of inventory, the fluctuations in TE Connectivity Ltd's ratio indicate some variability in the company's inventory management over the years. This could be due to changes in demand, production processes, or supply chain disruptions. Further analysis of the company's inventory management practices and industry trends could provide additional insights into the factors influencing these fluctuations.
Peer comparison
Sep 30, 2024