Terex Corporation (TEX)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,059,500 | 3,975,600 | 4,006,600 | 4,013,500 | 3,975,300 | 3,997,400 | 3,882,800 | 3,686,800 | 3,546,500 | 3,382,500 | 3,314,400 | 3,257,300 | 3,129,400 | 2,948,700 | 2,752,700 | 2,529,000 | 2,537,100 | 2,616,000 | 2,811,700 | 3,263,400 |
| Inventory | US$ in thousands | 1,147,000 | 1,222,000 | 1,232,800 | 1,217,600 | 1,186,000 | 1,117,000 | 1,122,000 | 1,083,200 | 988,400 | 981,200 | 963,200 | 921,300 | 813,500 | 747,700 | 711,700 | 658,800 | 610,400 | 635,500 | 699,800 | 823,000 |
| Inventory turnover | 3.54 | 3.25 | 3.25 | 3.30 | 3.35 | 3.58 | 3.46 | 3.40 | 3.59 | 3.45 | 3.44 | 3.54 | 3.85 | 3.94 | 3.87 | 3.84 | 4.16 | 4.12 | 4.02 | 3.97 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,059,500K ÷ $1,147,000K
= 3.54
Inventory turnover is a financial ratio that measures how efficiently a company manages its inventory by calculating the number of times inventory is sold and replaced during a specific period. For Terex Corporation, the inventory turnover has exhibited some fluctuations over the past few years.
From March 31, 2020, to December 31, 2022, the inventory turnover ratio generally increased from 3.97 to 3.59, indicating an improvement in inventory management efficiency. However, from March 31, 2023, to December 31, 2024, the ratio has declined from 3.40 to 3.54, showing a reversal in the earlier positive trend.
Overall, Terex Corporation's inventory turnover ratio has ranged between 3.25 and 4.16 during the periods reported. The lower inventory turnover ratios in recent quarters may suggest potential inefficiencies in inventory management or challenges in selling products quickly. It is important for the company to closely monitor its inventory levels and sales to ensure optimal utilization of resources and maximize profitability.