Vontier Corp (VNT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 746,500 | 663,000 | 673,900 | 740,200 | 769,300 | 2,568,600 | 2,587,700 | 2,589,200 | 2,557,600 | 2,468,500 | 2,435,600 | 2,401,300 | 2,363,800 |
| Inventory | US$ in thousands | 337,800 | 333,000 | 323,100 | 294,800 | 296,600 | 314,300 | 329,200 | 350,800 | 346,000 | 377,500 | 326,400 | 325,400 | 287,000 |
| Inventory turnover | 2.21 | 1.99 | 2.09 | 2.51 | 2.59 | 8.17 | 7.86 | 7.38 | 7.39 | 6.54 | 7.46 | 7.38 | 8.24 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $746,500K ÷ $337,800K
= 2.21
The inventory turnover ratio of Vontier Corp has shown some fluctuations over the period from December 31, 2021, to December 31, 2024. The trend indicates a generally decreasing efficiency in managing its inventory.
The ratio started at 8.24 on December 31, 2021, which means the company turned over its inventory 8.24 times during that period. However, by September 30, 2024, the ratio had decreased to 1.99, showing a significant decline in inventory turnover efficiency.
The decreasing trend in the inventory turnover ratio may suggest that Vontier Corp is either carrying too much inventory relative to its sales or facing challenges in selling its inventory efficiently. This could potentially lead to increased carrying costs, obsolete inventory, and reduced liquidity.
It is essential for Vontier Corp to analyze the reasons behind the declining inventory turnover ratio and take appropriate actions to better manage its inventory levels. By improving inventory management practices, the company can enhance operational efficiency, reduce costs, and optimize its working capital utilization.
Peer comparison
Dec 31, 2024
Dec 31, 2024