Vishay Intertechnology Inc (VSH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,427,550 | 2,438,410 | 2,352,570 | 1,920,000 | 1,997,100 |
| Inventory | US$ in thousands | 647,520 | 618,879 | 536,500 | 448,251 | 431,680 |
| Inventory turnover | 3.75 | 3.94 | 4.39 | 4.28 | 4.63 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,427,550K ÷ $647,520K
= 3.75
The inventory turnover of Vishay Intertechnology, Inc. has shown a declining trend over the past five years, decreasing from 4.63 in 2019 to 3.75 in 2023. This indicates that the company's efficiency in managing its inventory has decreased over time. A lower inventory turnover ratio suggests that the company is holding onto its inventory for a longer period before selling it.
A decreasing inventory turnover ratio can be a sign of potential issues such as overstocking, slow-moving inventory, or ineffective inventory management practices. It may also indicate challenges in forecasting demand accurately or managing production levels efficiently.
Vishay Intertechnology, Inc. should analyze the factors contributing to the declining inventory turnover ratio and take appropriate actions to improve inventory management efficiency. This could involve optimizing inventory levels, streamlining supply chain processes, enhancing demand forecasting accuracy, or reducing obsolete inventory. Improving inventory turnover can help free up working capital, reduce carrying costs, and enhance overall profitability for the company.
Peer comparison
Dec 31, 2023