Visteon Corp (VC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,335,000 | 3,467,000 | 3,388,000 | 2,519,000 | 2,303,000 |
| Inventory | US$ in thousands | 283,000 | 298,000 | 348,000 | 262,000 | 177,000 |
| Inventory turnover | 11.78 | 11.63 | 9.74 | 9.61 | 13.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,335,000K ÷ $283,000K
= 11.78
Visteon Corp's inventory turnover has shown a decreasing trend over the years, declining from 13.01 times in December 2020 to 9.61 times in December 2021, followed by slight fluctuations around the 9 to 12 range in the subsequent years. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally considered positive as it implies efficient inventory management. However, the downward trend observed in the inventory turnover ratio of Visteon Corp may suggest potential issues such as overstocking, slow-moving inventory, or challenges in demand forecasting. Further analysis and comparison with industry benchmarks would provide better insights into the efficiency of Visteon Corp's inventory management practices.
Peer comparison
Dec 31, 2024