Whirlpool Corporation (WHR)
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 | 16,357,000 | 16,965,000 | 17,828,000 | 18,485,000 | 18,510,000 | 18,510,000 | 18,448,000 | 19,034,000 | 19,134,000 | 19,607,000 | 19,967,000 | 19,671,000 | 19,973,000 | 18,980,000 | 18,787,000 | 17,991,000 | 17,312,000 | 17,212,000 | 17,398,000 | 18,349,000 |
| Inventory | US$ in thousands | 2,035,000 | 2,277,000 | 2,309,000 | 2,381,000 | 2,247,000 | 2,388,000 | 2,484,000 | 2,351,000 | 2,089,000 | 2,884,000 | 3,218,000 | 3,136,000 | 2,717,000 | 2,876,000 | 2,652,000 | 2,470,000 | 2,301,000 | 2,216,000 | 2,129,000 | 2,543,000 |
| Inventory turnover | 8.04 | 7.45 | 7.72 | 7.76 | 8.24 | 7.75 | 7.43 | 8.10 | 9.16 | 6.80 | 6.20 | 6.27 | 7.35 | 6.60 | 7.08 | 7.28 | 7.52 | 7.77 | 8.17 | 7.22 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,357,000K ÷ $2,035,000K
= 8.04
Whirlpool Corporation's inventory turnover ratio measures how efficiently the company manages its inventory levels. The ratio is calculated by dividing the cost of goods sold by the average inventory for a specific period.
Analyzing the inventory turnover data provided, we observe fluctuations in Whirlpool's inventory turnover ratio over the given time period. In general, a higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is usually a positive sign.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio fluctuated between a low of 6.20 on June 30, 2022, and a high of 9.16 on December 31, 2022. The ratio has displayed a generally decreasing trend since December 31, 2022, reaching a low of 7.45 on September 30, 2024, before increasing slightly to 8.04 on December 31, 2024.
The decreasing trend in the inventory turnover ratio could suggest potential issues with inventory management, such as overstocking or slow-moving inventory. However, the ratio remained relatively healthy throughout the period, indicating that Whirlpool has been effectively managing its inventory levels to support its sales operations.
It would be beneficial for Whirlpool Corporation to conduct a thorough analysis of its inventory management practices to optimize its turnover ratio and ensure efficient utilization of resources.
Peer comparison
Dec 31, 2024
Dec 31, 2024