Waters Corporation (WAT)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,074,800	1,970,570	1,843,500	1,624,330	1,596,490
Inventory	US$ in thousands	516,236	455,710	356,095	304,281	320,551
Inventory turnover		4.02	4.32	5.18	5.34	4.98

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,074,800K ÷ $516,236K
= 4.02

Waters Corp.'s inventory turnover has been fluctuating over the past five years. The ratio stood at 3.15 in 2019, increased to 3.31 in 2020, then declined to 3.25 in 2021 and further to 2.74 in 2022. By the end of 2023, the inventory turnover ratio was at 2.32, indicating a decrease in the efficiency of managing inventory compared to the previous years. A decreasing trend in inventory turnover could suggest potential issues such as overstocking, slow-moving inventory, or lower sales. This trend warrants a closer inspection of the company's inventory management practices to identify areas that may need optimization for improved efficiency and profitability.