Tempur Sealy International Inc (TPX)
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 | 2,796,700 | 2,837,200 | 2,876,000 | 2,863,100 | 2,871,600 | 2,928,500 | 2,967,500 | 2,903,900 | 2,772,100 | 2,588,800 | 2,409,700 | 2,158,100 | 2,038,500 | 1,951,600 | 1,809,900 | 1,820,000 | 1,763,800 | 1,671,800 | 1,640,900 | 1,618,600 |
| Inventory | US$ in thousands | 483,100 | 485,500 | 529,300 | 566,700 | 555,000 | 599,000 | 619,100 | 581,300 | 463,900 | 384,900 | 324,200 | 318,800 | 312,100 | 275,600 | 258,800 | 273,400 | 260,500 | 270,800 | 243,100 | 239,700 |
| Inventory turnover | 5.79 | 5.84 | 5.43 | 5.05 | 5.17 | 4.89 | 4.79 | 5.00 | 5.98 | 6.73 | 7.43 | 6.77 | 6.53 | 7.08 | 6.99 | 6.66 | 6.77 | 6.17 | 6.75 | 6.75 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,796,700K ÷ $483,100K
= 5.79
Tempur Sealy International Inc's inventory turnover has shown a consistent trend of around 5 times per year from Q1 2022 to Q3 2023, indicating that the company is efficiently managing its inventory levels. A higher inventory turnover ratio suggests that the company is selling its inventory quickly and efficiently, which is generally a positive sign. This trend indicates that Tempur Sealy has been effectively managing its inventory levels over the past several quarters, potentially reducing holding costs and minimizing the risk of obsolete inventory. The slight fluctuations in the ratio from quarter to quarter are relatively minor and do not indicate any significant concerns regarding the company's inventory management practices. Overall, the inventory turnover ratio for Tempur Sealy International Inc appears to be healthy and in line with industry standards.
Peer comparison
Dec 31, 2023
Dec 31, 2023