Dentsply Sirona Inc (XRAY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,077,000 | 4,945,000 | 1,790,000 | 3,550,000 | 3,858,200 |
| Inventory | US$ in thousands | 624,000 | 627,000 | 515,000 | 476,000 | 562,000 |
| Inventory turnover | 6.53 | 7.89 | 3.48 | 7.46 | 6.87 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,077,000K ÷ $624,000K
= 6.53
DENTSPLY Sirona Inc's inventory turnover has shown some fluctuation over the past five years. The inventory turnover ratio indicates how efficiently the company is managing its inventory levels. A higher turnover ratio suggests that inventory is being sold and replenished more frequently.
In 2023, the inventory turnover ratio was 3.01, a slight increase from the previous year's 2.86. This indicates an improvement in inventory management efficiency, as the company was able to sell and replenish its inventory more frequently.
Looking back over the past five years, the trend has been somewhat variable. The ratio was highest in 2021 at 3.66, indicating strong inventory management during that year. However, it dipped slightly in 2022 and 2023, but still remained above the benchmark of 3.
Overall, DENTSPLY Sirona Inc's inventory turnover ratios suggest that the company has been relatively effective in managing its inventory levels and converting inventory into sales. Further analysis of inventory holding periods and trends in sales would provide additional insights into the company's inventory management efficiency.
Peer comparison
Dec 31, 2023