Whirlpool Corporation (WHR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,655,000 | 19,351,000 | 20,189,000 | 18,346,000 | 19,803,000 |
| Inventory | US$ in thousands | 2,247,000 | 2,089,000 | 2,717,000 | 2,301,000 | 2,438,000 |
| Inventory turnover | 8.30 | 9.26 | 7.43 | 7.97 | 8.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,655,000K ÷ $2,247,000K
= 8.30
Whirlpool Corp.'s inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by comparing the cost of goods sold to the average inventory level.
In 2023, the inventory turnover ratio decreased to 7.25 from 7.97 in 2022, indicating that Whirlpool turned over its inventory 7.25 times during the year. This decline may suggest that Whirlpool faced challenges in managing its inventory efficiently compared to the previous year.
However, the 2023 inventory turnover ratio of 7.25 is still higher than the ratios reported in 2021 and 2019, indicating an improvement in inventory management efficiency compared to those years.
Overall, while the recent decrease in inventory turnover may raise some concerns, the historical trend of inventory turnover ratios suggests that Whirlpool has generally been effective in managing its inventory levels over the past five years. Further analysis of the company's operations and market conditions would be required to determine the underlying reasons for the fluctuations in the inventory turnover ratio.
Peer comparison
Dec 31, 2023