Terex Corporation (TEX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,059,000 | 3,975,000 | 3,546,500 | 3,129,400 | 2,537,100 |
| Inventory | US$ in thousands | 1,147,000 | 1,186,000 | 988,400 | 813,500 | 610,400 |
| Inventory turnover | 3.54 | 3.35 | 3.59 | 3.85 | 4.16 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,059,000K ÷ $1,147,000K
= 3.54
The inventory turnover ratio for Terex Corporation has shown a slight decline over the past five years. Starting at 4.16 in December 2020, it decreased to 3.85 by December 2021, further dropping to 3.59 by December 2022, and continuing to decrease to 3.35 by December 2023. However, there was a modest increase to 3.54 by December 2024. This suggests that the company is taking longer to sell its inventory compared to previous years. A decreasing inventory turnover ratio may indicate inefficiencies in managing inventory, overstocking, or difficulties in selling products. Terex Corporation may need to evaluate its inventory management practices to improve efficiency and optimize working capital.