Waters Corporation (WAT)

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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,164,754	1,142,082	1,181,090	1,182,867	1,165,932	1,179,017	1,114,162	814,184	1,063,582	1,065,385	1,051,680	1,075,765	1,030,115	987,702	968,828	1,164,402	925,954	885,419	874,025	888,784
Inventory	US$ in thousands	477,261	518,994	522,927	538,634	516,236	544,402	536,828	499,422	455,710	442,236	409,922	381,902	356,095	388,756	348,770	327,967	304,281	326,946	344,009	344,009
Inventory turnover		2.44	2.20	2.26	2.20	2.26	2.17	2.08	1.63	2.33	2.41	2.57	2.82	2.89	2.54	2.78	3.55	3.04	2.71	2.54	2.58

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,164,754K ÷ $477,261K
= 2.44

The inventory turnover ratio for Waters Corporation has fluctuated over the years based on the provided data. The ratio indicates how many times a company's inventory is sold and replaced during a specific period.

From March 31, 2020, to March 31, 2021, the inventory turnover ratio increased steadily from 2.58 to 3.55, suggesting an improvement in inventory management efficiency. However, from June 30, 2021, to March 31, 2024, the ratio fluctuated within the range of 1.63 to 2.44.

The downward trend observed from March 31, 2021, to March 31, 2023, followed by a slight recovery, may indicate challenges in efficiently managing and selling inventory during that period.

It is essential for Waters Corporation to closely monitor and optimize its inventory turnover ratio to ensure effective management of inventory levels and maximize operational efficiency and profitability.