Texas Instruments Incorporated (TXN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,325,000 | 6,257,000 | 5,968,000 | 5,192,000 | 5,219,000 |
| Inventory | US$ in thousands | 3,999,000 | 2,757,000 | 1,910,000 | 1,955,000 | 2,001,000 |
| Inventory turnover | 2.08 | 2.27 | 3.12 | 2.66 | 2.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,325,000K ÷ $3,999,000K
= 2.08
Texas Instruments Inc.'s inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio decreased from 2.61 in 2019 to 2.66 in 2020, before dropping further to 3.12 in 2021, signifying an improvement in inventory management efficiency. However, there was a significant decline in the inventory turnover to 2.27 in 2022 and then to 1.63 in 2023, indicating a decrease in the rate at which the company is selling its inventory.
A lower inventory turnover ratio may suggest excessive inventory levels, slow-moving inventory, or challenges in converting inventory into sales. It could also indicate potential inefficiencies in production processes or distribution channels.
Further analysis and comparison with industry peers are recommended to determine the reasons behind the declining inventory turnover and to assess Texas Instruments Inc.'s overall inventory management performance.
Peer comparison
Dec 31, 2023