Veralto Corporation (VLTO)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,754,000 | 3,748,000 | 3,738,000 |
| Inventory | US$ in thousands | 288,000 | 326,000 | 312,000 |
| Inventory turnover | 13.03 | 11.50 | 11.98 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,754,000K ÷ $288,000K
= 13.03
To analyze Veralto Corporation's inventory turnover, we calculate the turnover ratio by dividing the Cost of Goods Sold (COGS) by the average inventory for the given periods.
1. June 30, 2024:
Inventory turnover ratio = COGS / Average Inventory
Inventory turnover ratio = COGS / ((Opening Inventory + Closing Inventory) / 2)
Inventory turnover ratio = COGS / ((Opening Inventory + Closing Inventory) / 2)
Inventory turnover ratio = COGS / ((Opening Inventory + Closing Inventory) / 2) = 11.98
2. September 30, 2024:
Inventory turnover ratio = COGS / Average Inventory
Inventory turnover ratio = COGS / ((Opening Inventory + Closing Inventory) / 2) = 11.50
3. December 31, 2024:
Inventory turnover ratio = COGS / Average Inventory
Inventory turnover ratio = COGS / ((Opening Inventory + Closing Inventory) / 2) = 13.03
Veralto Corporation's inventory turnover ratios for the periods ending June 30, 2024, September 30, 2024, and December 31, 2024 are 11.98, 11.50, and 13.03 respectively. This indicates that the company is efficiently managing its inventory by quickly selling and replacing its inventory. A higher turnover ratio implies that the company is selling its inventory more frequently, potentially indicating strong demand or effective inventory management. In contrast, a lower turnover ratio may suggest slow-moving inventory or overstocking. It is important for Veralto Corporation to maintain an optimal balance to ensure adequate inventory levels while avoiding excess carrying costs and obsolescence.
Peer comparison
Dec 31, 2024
Dec 31, 2024