Tempur Sealy International Inc (TPX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,796,700 | 2,871,600 | 2,772,100 | 2,038,500 | 1,763,800 |
| Inventory | US$ in thousands | 483,100 | 555,000 | 463,900 | 312,100 | 260,500 |
| Inventory turnover | 5.79 | 5.17 | 5.98 | 6.53 | 6.77 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,796,700K ÷ $483,100K
= 5.79
Tempur Sealy International Inc's inventory turnover ratio has been relatively stable over the past five years, ranging from 5.17 to 6.77. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times the company sells and replaces its inventory during a given period.
A higher inventory turnover ratio generally indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient inventory management. Tempur Sealy's inventory turnover ratio has shown a slight fluctuation, with the lowest turnover in 2022 and the highest in 2019.
The decreasing trend from 2019 to 2022 could suggest that the company may have been carrying more inventory or facing challenges in selling products during those years. However, the slight increase in 2023 compared to 2022 indicates a potential improvement in inventory management efficiency.
Overall, Tempur Sealy International Inc's inventory turnover ratio indicates that the company is relatively efficient in managing its inventory, but further analysis and comparison with industry standards would provide a more comprehensive understanding of its performance in inventory management.
Peer comparison
Dec 31, 2023