Trimble Inc (TRMB)
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 | 2,988,400 | 2,722,900 | 2,694,000 | 2,635,000 | 2,712,400 | 2,421,800 | 2,174,100 | 1,927,800 | 1,624,700 | 1,571,700 | 1,527,900 | 1,437,500 | 1,397,100 | 1,402,300 | 1,411,500 | 1,477,200 | 1,490,400 | 1,497,600 | 1,503,600 | 1,702,400 |
| Inventory | US$ in thousands | 235,700 | 257,200 | 371,400 | 409,400 | 402,500 | 391,100 | 371,700 | 401,000 | 363,300 | 323,400 | 298,500 | 298,700 | 301,700 | 318,500 | 338,600 | 327,200 | 312,100 | 290,100 | 287,900 | 303,700 |
| Inventory turnover | 12.68 | 10.59 | 7.25 | 6.44 | 6.74 | 6.19 | 5.85 | 4.81 | 4.47 | 4.86 | 5.12 | 4.81 | 4.63 | 4.40 | 4.17 | 4.51 | 4.78 | 5.16 | 5.22 | 5.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,988,400K ÷ $235,700K
= 12.68
Trimble Inc's inventory turnover ratio has been fluctuating over the past few quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory levels by indicating how many times a company sells and replaces its inventory within a specific period.
From Dec 31, 2019, to Dec 31, 2023, Trimble Inc's inventory turnover has shown a general increasing trend, indicating an improvement in inventory management efficiency. The ratio increased from 5.16 to 12.68 during this period.
The significant increase in the inventory turnover ratio suggests that Trimble Inc has been able to sell and replace its inventory more frequently in recent periods. This may indicate better demand forecasting, efficient inventory control, or improved supply chain management.
However, the ratio dipped in some quarters, such as in Jun 30, 2023, and Mar 31, 2023, compared to the previous periods. This could signal potential challenges in managing inventory levels during those specific quarters.
Overall, Trimble Inc's inventory turnover ratio indicates that the company has made progress in optimizing its inventory management practices, but it should continue to monitor and fine-tune its inventory control processes to ensure optimal efficiency and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023