TE Connectivity Ltd (TEL)
Inventory turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,431,000 | 12,446,000 | 12,583,000 | 12,882,000 | 13,096,000 | 13,373,000 | 13,391,000 | 13,126,000 | 12,950,000 | 12,439,000 | 12,204,000 | 12,035,000 | 11,949,000 | 11,725,000 | 11,030,000 | 11,528,000 | 11,168,000 | 11,102,000 | 11,543,000 | 10,811,000 |
| Inventory | US$ in thousands | 2,517,000 | 2,669,000 | 2,744,000 | 2,783,000 | 2,552,000 | 2,801,000 | 2,811,000 | 2,927,000 | 2,676,000 | 3,028,000 | 2,999,000 | 2,845,000 | 2,511,000 | 2,392,000 | 2,134,000 | 2,066,000 | 1,950,000 | 2,227,000 | 2,001,000 | 2,003,000 |
| Inventory turnover | 4.94 | 4.66 | 4.59 | 4.63 | 5.13 | 4.77 | 4.76 | 4.48 | 4.84 | 4.11 | 4.07 | 4.23 | 4.76 | 4.90 | 5.17 | 5.58 | 5.73 | 4.99 | 5.77 | 5.40 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,431,000K ÷ $2,517,000K
= 4.94
TE Connectivity Ltd's inventory turnover has shown variability over the past few years, ranging from a low of 4.07 in March 2022 to a high of 5.77 in December 2019. The average inventory turnover ratio for the period is approximately 4.86. This suggests that, on average, the company sells and replenishes its inventory about 4.86 times a year.
A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and converting its inventory into sales quickly. Conversely, a lower ratio may imply slower sales or potential issues with inventory management.
The trend in TE Connectivity Ltd's inventory turnover shows some fluctuations but generally remains within a narrow range, indicating relative stability in its inventory management practices. Further analysis and comparison with industry benchmarks could provide more insights into the effectiveness of the company's inventory management strategies.
Peer comparison
Sep 30, 2024
Sep 30, 2024