Textron Inc (TXT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,008,000 | 1,154,000 | 998,000 | 1,113,000 | 1,055,000 |
| Inventory | US$ in thousands | 4,071,000 | 3,914,000 | 3,550,000 | 3,468,000 | 3,513,000 |
| Inventory turnover | 0.25 | 0.29 | 0.28 | 0.32 | 0.30 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,008,000K ÷ $4,071,000K
= 0.25
The inventory turnover ratio for Textron Inc has been relatively stable over the past five years, ranging from 0.25 to 0.32. This ratio indicates that, on average, the company is turning over its inventory approximately 0.25 to 0.32 times in a year. A lower inventory turnover ratio may suggest inefficiencies in inventory management, potentially leading to higher carrying costs or obsolete inventory. However, it is essential to consider industry norms and the nature of Textron's business when evaluating the significance of these figures. Overall, maintaining a stable or improving inventory turnover ratio is crucial for optimizing cash flow and profitability.
Peer comparison
Dec 31, 2024