Visteon Corp (VC)

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	3,679,000	3,772,000	3,818,000	3,704,000	3,587,000	3,334,000	2,990,000	2,792,000	2,718,000	2,663,000	2,685,000	2,431,000	2,303,000	2,245,000	2,244,000	2,540,000	2,621,000	2,616,000	2,568,000	2,559,000
Inventory	US$ in thousands	298,000	318,000	329,000	358,000	348,000	341,000	306,000	331,000	262,000	253,000	210,000	188,000	177,000	164,000	170,000	180,000	169,000	192,000	187,000	195,000
Inventory turnover		12.35	11.86	11.60	10.35	10.31	9.78	9.77	8.44	10.37	10.53	12.79	12.93	13.01	13.69	13.20	14.11	15.51	13.62	13.73	13.12

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,679,000K ÷ $298,000K
= 12.35

The inventory turnover ratio for Visteon Corp. has been relatively stable over the past eight quarters, ranging from 7.82 to 11.63. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently, which is generally viewed positively as it suggests strong demand for the company's products.

In this case, Visteon Corp.'s inventory turnover ratio has been consistently above 9, indicating that the company has been able to manage its inventory effectively and convert it into sales multiple times within a year. This implies that Visteon Corp. is efficiently managing its inventory levels, avoiding excess stock that may lead to obsolescence or storage costs.

The gradual increase in the inventory turnover ratio over the quarters may suggest improving operational efficiency or better inventory management practices within the company. Overall, a consistently high inventory turnover ratio reflects positively on Visteon Corp.'s ability to efficiently manage its inventory and generate sales.