Agilysys Inc (AGYS)

Inventory turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	223,079	213,974	207,684	197,541	186,936	183,056	174,684	167,123	159,571	176,425	177,967	168,587	162,646	192,233	196,895	212,376	221,125	127,443	122,705	117,409
Inventory	US$ in thousands	4,587	6,772	7,485	8,452	9,774	10,349	9,659	7,246	6,940	3,256	1,881	1,186	1,177	1,322	2,174	2,760	3,887	1,856	954	1,483
Inventory turnover		48.63	31.60	27.75	23.37	19.13	17.69	18.09	23.06	22.99	54.18	94.61	142.15	138.19	145.41	90.57	76.95	56.89	68.67	128.62	79.17

March 31, 2024 calculation

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

The inventory turnover ratio for Agilysys Inc has fluctuated over the past few quarters. The ratio indicates how many times the company's inventory is sold and replaced over a given period. A higher inventory turnover ratio is generally preferred as it implies that the company is efficiently managing its inventory.

Looking at the data, we can see that the inventory turnover ratio has generally been trending upwards since the end of 2020, indicating an improvement in the company's inventory management. In recent quarters, the ratio has remained relatively high, suggesting that Agilysys Inc is effectively selling its inventory and replenishing it in a timely manner.

However, it is important to note the substantial fluctuations in the ratio, with some quarters showing significantly lower turnover rates compared to others. This could be due to seasonal factors, changes in demand, or inventory management issues during certain periods.

Overall, while the inventory turnover ratio for Agilysys Inc has shown positive trends in recent quarters, it is important for the company to closely monitor and maintain consistency in its inventory turnover to ensure efficient operations and optimal use of resources.