Agilysys Inc (AGYS)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	223,079	186,936	159,572	162,648	221,122
Inventory	US$ in thousands	4,587	9,774	6,940	1,177	3,887
Inventory turnover		48.63	19.13	22.99	138.19	56.89

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $223,079K ÷ $4,587K
= 48.63

Agilysys Inc's inventory turnover has fluctuated over the past five years. In particular, the inventory turnover ratio was highest in March 31, 2021, at 138.19, indicating a very high turnover rate of inventory during that period. This suggests that Agilysys Inc was effectively managing its inventory and converting it into sales rapidly.

However, in the subsequent years, the inventory turnover ratio decreased significantly. In March 31, 2022, it was 22.99, dropping from the previous year. This decline indicates that Agilysys Inc may have had excess inventory on hand or faced challenges in converting inventory into sales efficiently.

The inventory turnover further decreased in March 31, 2023, to 19.13, indicating continuing challenges in managing inventory effectively. However, in March 31, 2024, there was a significant improvement in the inventory turnover ratio to 48.63, suggesting that Agilysys Inc may have implemented better inventory management strategies to improve its efficiency in converting inventory into sales.

Overall, the fluctuation in Agilysys Inc's inventory turnover ratio over the five-year period indicates varying levels of efficiency in managing and selling inventory. It is essential for the company to continue monitoring and improving its inventory management practices to maintain a healthy balance between inventory levels and sales performance.