Trimble Inc (TRMB)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,465,900 | 1,570,700 | 1,624,700 | 1,397,100 | 1,490,400 |
| Inventory | US$ in thousands | 235,700 | 402,500 | 363,300 | 301,700 | 312,100 |
| Inventory turnover | 6.22 | 3.90 | 4.47 | 4.63 | 4.78 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,465,900K ÷ $235,700K
= 6.22
Inventory turnover is a key financial ratio that indicates how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover generally suggests that the company is efficiently managing its inventory levels.
Looking at Trimble Inc's inventory turnover over the past five years, we can observe fluctuations in the ratio. In 2023, the inventory turnover ratio was 6.22, a significant increase from the previous year's ratio of 3.90. This indicates that Trimble Inc was able to sell and replace its inventory more than six times during the year, reflecting a more efficient management of inventory levels.
In comparison to previous years, the inventory turnover ratio in 2023 is notably higher than in 2022, 2021, 2020, and 2019. This improvement suggests that Trimble Inc has been more effective in managing its inventory turnover in 2023, potentially due to better inventory control processes or more effective demand forecasting.
Overall, the increasing trend in inventory turnover from 2019 to 2023 indicates that Trimble Inc has been improving its inventory management efficiency over the years, which can have positive implications for the company's financial performance and profitability.
Peer comparison
Dec 31, 2023