Whirlpool Corporation (WHR)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 18,785,000 | 19,161,000 | 19,274,000 | 19,970,000 |
| Inventory | US$ in thousands | 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 | 2,438,000 | 2,883,000 | 3,008,000 | 2,960,000 |
| Inventory turnover | 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 | 7.71 | 6.65 | 6.41 | 6.75 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,510,000K ÷ $2,247,000K
= 8.24
The inventory turnover ratio of Whirlpool Corp. has shown variations over the past eight quarters, ranging from a low of 5.41 in Q2 2022 to a high of 7.97 in Q4 2022. The ratio measures how efficiently the company is managing its inventory by calculating how many times the company's inventory is sold and replaced within a specific time period.
A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a positive sign of strong sales performance and effective inventory management. Conversely, a lower ratio may suggest overstocking or slow-moving inventory, potentially leading to higher carrying costs and obsolescence risks.
In the case of Whirlpool Corp., the general trend indicates a relatively stable inventory turnover rate, hovering around the range of 6 to 8 over the past two years. This suggests that the company has been able to effectively manage its inventory levels to support its sales activities. However, it is essential to monitor any deviations from this trend to ensure optimal inventory management practices and cost efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023