TE Connectivity Ltd (TEL)
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 | 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 | 10,979,000 | 10,573,000 | 10,902,000 |
| Inventory | US$ in thousands | 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 | 1,836,000 | 1,961,000 | 1,970,000 |
| Inventory turnover | 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 | 5.98 | 5.39 | 5.53 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,882,000K ÷ $2,783,000K
= 4.63
TE Connectivity Ltd's inventory turnover ratio has shown some variability over the past few quarters, ranging from a low of 4.07 to a high of 5.77. The inventory turnover ratio measures how effectively the company is managing its inventory by indicating the number of times a company sells and replaces its inventory during a specific period.
Overall, the company's inventory turnover has been relatively stable, with the most recent ratios falling within the range of 4.76 to 5.13. This suggests that TE Connectivity Ltd is efficiently managing its inventory levels and turning over its inventory in a timely manner.
A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign of strong sales and efficient inventory management. On the other hand, a lower inventory turnover ratio may indicate excess inventory levels or slow-moving inventory, which could tie up capital and lead to potential obsolescence issues.
In conclusion, the inventory turnover ratios for TE Connectivity Ltd reflect a consistent and efficient management of inventory levels, which can positively impact the company’s financial performance and overall operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023