Vishay Intertechnology Inc (VSH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,311,300 | 2,427,550 | 2,438,410 | 2,352,570 | 1,920,000 |
| Inventory | US$ in thousands | 689,381 | 647,520 | 618,879 | 536,500 | 448,251 |
| Inventory turnover | 3.35 | 3.75 | 3.94 | 4.39 | 4.28 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,311,300K ÷ $689,381K
= 3.35
Over the past five years, Vishay Intertechnology Inc's inventory turnover ratio has shown a slight increase from 4.28 in December 31, 2020, to 4.39 in December 31, 2021. However, the trend reversed in the following years, with the ratio decreasing to 3.94 in December 31, 2022, 3.75 in December 31, 2023, and further dropping to 3.35 in December 31, 2024.
A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally a positive sign of efficient inventory management. However, the declining trend in Vishay Intertechnology Inc's inventory turnover over the past few years may indicate potential issues such as overstocking, slowing sales, or inefficient inventory management practices.
It would be advisable for the company to closely monitor and analyze the reasons behind this decreasing trend in inventory turnover to identify and address any underlying operational inefficiencies that may be impacting the company's overall performance and profitability.
Peer comparison
Dec 31, 2024