Apple Inc (AAPL)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	236,449,000	239,069,000	248,640,000	234,954,000	189,475,000
Inventory	US$ in thousands	7,286,000	6,331,000	4,946,000	6,580,000	4,061,000
Inventory turnover		32.45	37.76	50.27	35.71	46.66

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $236,449,000K ÷ $7,286,000K
= 32.45

The inventory turnover ratio of Apple Inc has exhibited fluctuations over the past five years, ranging from a low of 32.45 in 2024 to a high of 50.27 in 2022. This ratio measures how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

A higher inventory turnover ratio signifies that Apple Inc is selling its products at a faster rate and efficiently managing its inventory levels. Conversely, a lower ratio may indicate overstocking or potential sales challenges.

In 2022, Apple Inc achieved its highest inventory turnover of 50.27, indicating strong sales and effective inventory management strategies. However, the ratio decreased in 2023 and further in 2024, potentially suggesting changes in demand, production capacity, or inventory control practices.

Overall, Apple Inc's inventory turnover has shown variability over the years, reflecting the dynamic nature of its operations and market conditions. An in-depth analysis of the underlying factors driving these changes would provide valuable insights into the company's supply chain management effectiveness.