Adient PLC (ADNT)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,362,000 | 13,314,000 | 12,854,000 | 12,078,000 | 15,725,000 |
| Inventory | US$ in thousands | 841,000 | 953,000 | 976,000 | 685,000 | 793,000 |
| Inventory turnover | 17.08 | 13.97 | 13.17 | 17.63 | 19.83 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $14,362,000K ÷ $841,000K
= 17.08
The inventory turnover of Adient plc has shown fluctuations over the past five years. In 2019, the inventory turnover was 19.83, indicating that the company's inventory was sold and replaced approximately 19.83 times during the year. However, there has been a decreasing trend in the inventory turnover since then, reaching 17.08 in 2023.
A declining inventory turnover could suggest inefficiencies in inventory management or potential overstocking, leading to higher carrying costs. It may also indicate slower sales or a buildup of inventory, which could impact liquidity and working capital.
It is important for Adient plc to assess the reasons behind the decreasing inventory turnover and take appropriate measures to optimize inventory levels and improve operational efficiency. This could involve better demand forecasting, streamlining supply chain processes, or reassessing the product mix to ensure a balanced inventory turnover ratio in the future.
Peer comparison
Sep 30, 2023