Apple Inc (AAPL)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 239,069,000 | 248,640,000 | 234,954,000 | 189,475,000 | 180,027,000 |
| Inventory | US$ in thousands | 6,331,000 | 4,946,000 | 6,580,000 | 4,061,000 | 4,106,000 |
| Inventory turnover | 37.76 | 50.27 | 35.71 | 46.66 | 43.84 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $239,069,000K ÷ $6,331,000K
= 37.76
The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold or used up over a specific period. A higher inventory turnover signifies more efficient inventory management.
Analyzing Apple Inc's inventory turnover from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the inventory turnover was 39.40, indicating that Apple sold and replaced its inventory approximately 39.40 times during that fiscal year. This implies a relatively efficient management of inventory.
In 2020, the inventory turnover increased to 41.75, indicating an improvement in the efficiency of Apple's inventory management. However, in 2021, the ratio decreased to 32.37, which suggests a decrease in the efficiency of managing inventory, as Apple Inc did not sell and replace its inventory as frequently as in the previous year.
The year 2022 saw a substantial increase in the inventory turnover to 45.20, signifying a significant improvement in Apple's management of inventory. This increase suggests that Apple was able to sell and replenish its inventory at a much faster pace compared to the previous year.
Finally, in 2023, the inventory turnover further increased to 33.82, showing a slight decline compared to the previous year but still indicating a relatively efficient management of inventory.
Overall, Apple's inventory turnover has exhibited fluctuations over the years. It is essential to understand the reasons behind these fluctuations, such as changes in demand, production, or supply chain efficiency, to comprehensively assess Apple's inventory management performance.
Peer comparison
Sep 30, 2023