Trimble Inc (TRMB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,190,100 | 1,569,500 | 1,570,700 | 1,624,400 | 1,392,800 |
| Inventory | US$ in thousands | 194,300 | 235,700 | 402,500 | 363,300 | 301,700 |
| Inventory turnover | 6.13 | 6.66 | 3.90 | 4.47 | 4.62 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,190,100K ÷ $194,300K
= 6.13
To analyze Trimble Inc's inventory turnover, we can observe the trend over the years as follows:
- In 2020, the inventory turnover ratio was 4.62, indicating that the company sold and replaced its inventory approximately 4.62 times during that year.
- By the end of 2021, the inventory turnover ratio decreased slightly to 4.47, suggesting a slight decline in the efficiency of inventory management compared to the previous year.
- In 2022, there was a further decrease in the inventory turnover ratio to 3.90, indicating that inventory turnover slowed down, potentially signaling challenges in managing and selling inventory efficiently.
- However, in 2023, a significant improvement was observed with the inventory turnover ratio jumping to notably high 6.66, reflective of a more efficient inventory management and sales process during that period.
- By the end of 2024, although there was a slight decrease to 6.13 in the inventory turnover ratio, it remained relatively high implying that the company continued to manage its inventory effectively and swiftly.
Overall, Trimble Inc has shown fluctuations in its inventory turnover ratio over the years, with some periods indicating commendable efficiency in managing inventory turnover, while others suggesting room for improvement to enhance operational effectiveness in inventory management.
Peer comparison
Dec 31, 2024