NCR Voyix Corporation (VYX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 924,000 | 1,352,000 | 1,422,000 | 4,683,000 | 4,994,000 |
| Inventory | US$ in thousands | 254,000 | 357,000 | 754,000 | 601,000 | 784,000 |
| Inventory turnover | 3.64 | 3.79 | 1.89 | 7.79 | 6.37 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $924,000K ÷ $254,000K
= 3.64
The inventory turnover ratio measures how efficiently a company manages its inventory by assessing how many times the company sells and replenishes its inventory within a specific period. In the case of NCR Voyix Corporation, the trend of the inventory turnover over the past five years shows some fluctuation.
In 2023, the inventory turnover ratio decreased to 3.64 from 3.79 in 2022. This decrease indicates that the company's inventory was turned over slightly less frequently in 2023 compared to the previous year. Despite the decrease, a turnover ratio of 3.64 still suggests that NCR Voyix Corporation is effectively managing its inventory and converting it into sales.
The inventory turnover ratio was significantly lower in 2021 at 1.89, indicating that the company was slower in selling and replenishing its inventory in that year. This might suggest potential issues with inventory management efficiency during that period.
A notable increase in the inventory turnover ratio was seen in 2020, rising to 7.79 from 6.37 in 2019. This substantial increase suggests that in 2020, the company was able to sell and replenish its inventory more frequently, reflecting a potentially more efficient inventory management process during that year.
Overall, while there have been fluctuations in the inventory turnover ratio of NCR Voyix Corporation over the past five years, the company has generally demonstrated a capacity to efficiently manage its inventory. The declining trend in recent years may warrant further investigation into potential shifts in the company's sales strategy, production processes, or demand patterns impacting its inventory turnover.