Apogee Enterprises Inc (APOG)
Inventory turnover
| Mar 2, 2024 | Nov 25, 2023 | Aug 26, 2023 | May 27, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,298,722 | 1,263,485 | 1,294,504 | 1,321,419 | 1,316,992 | 1,367,408 | 1,350,829 | 1,339,657 | 1,327,102 | 1,391,423 | 1,338,749 | 1,306,152 | 1,278,614 | 1,104,152 | 1,103,925 | 1,078,508 | 1,068,480 | 1,110,831 | 1,120,853 | 1,127,669 |
| Inventory | US$ in thousands | 69,240 | 70,267 | 72,775 | 80,579 | 78,441 | 86,032 | 98,046 | 98,517 | 80,494 | 75,437 | 76,601 | 70,867 | 72,823 | 73,815 | 70,191 | 75,285 | 71,089 | 75,791 | 74,284 | 77,345 |
| Inventory turnover | 18.76 | 17.98 | 17.79 | 16.40 | 16.79 | 15.89 | 13.78 | 13.60 | 16.49 | 18.44 | 17.48 | 18.43 | 17.56 | 14.96 | 15.73 | 14.33 | 15.03 | 14.66 | 15.09 | 14.58 |
March 2, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,298,722K ÷ $69,240K
= 18.76
Apogee Enterprises Inc's inventory turnover ratio has been relatively stable over the past several quarters, ranging between 13.60 and 18.76. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
A higher inventory turnover ratio generally signifies that the company is selling its inventory more quickly, which can reduce carrying costs and minimize the risk of obsolete inventory. On the other hand, a lower ratio may indicate slower sales, excess inventory, or potential inefficiencies in managing inventory levels.
In the case of Apogee Enterprises Inc, the average inventory turnover ratio over the past several quarters is around 16.35. This suggests that, on average, the company is selling and replacing its inventory approximately 16.35 times a year.
A consistent and healthy inventory turnover ratio is essential for maintaining optimal working capital levels and ensuring that inventory is efficiently managed to meet customer demand. Monitoring changes in the inventory turnover ratio over time can provide insights into the company's operational efficiency and effectiveness in managing its inventory levels.