American Woodmark Corporation (AMWD)
Inventory turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,469,700 | 1,708,680 | 1,630,740 | 1,421,900 | 1,298,850 |
| Inventory | US$ in thousands | 159,101 | 190,699 | 228,259 | 158,167 | 108,528 |
| Inventory turnover | 9.24 | 8.96 | 7.14 | 8.99 | 11.97 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,469,700K ÷ $159,101K
= 9.24
The inventory turnover ratio for American Woodmark Corporation has been fluctuating over the past five years. It stood at 11.97 in April 2019, indicating that the company was able to sell and replace its inventory nearly 12 times during that year. However, the ratio decreased to 7.14 in April 2022, suggesting that the company's inventory turnover slowed down significantly.
In the most recent period, April 2024, the inventory turnover ratio improved to 9.24, indicating that the company is now able to sell and replace its inventory more efficiently compared to the previous year. This could be due to better inventory management practices or increased demand for the company's products.
Overall, while the inventory turnover ratio has been somewhat volatile, the recent improvement suggests a positive trend in the company's inventory management and sales efficiency. It is essential for American Woodmark Corporation to continue monitoring and improving its inventory turnover to ensure optimal utilization of resources and maintain profitability.