Avnet Inc (AVT)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,815,800 | 20,990,700 | 23,354,700 | 21,345,300 | 17,294,000 |
| Inventory | US$ in thousands | 5,235,480 | 5,468,730 | 5,465,030 | 4,244,150 | 3,236,840 |
| Inventory turnover | 3.78 | 3.84 | 4.27 | 5.03 | 5.34 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $19,815,800K ÷ $5,235,480K
= 3.78
The inventory turnover ratio for Avnet Inc has exhibited a declining trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 5.34 times in 2021 to 5.03 times in 2022, indicating a slight reduction in how frequently inventory is sold and replaced within that year. This downward trajectory continued in subsequent years, with the ratio falling to 4.27 times in 2023, then further to 3.84 times in 2024, and reaching 3.78 times by 2025.
This consistent decline suggests a gradual slowdown in inventory turnover over the period. Such a pattern may reflect several underlying factors, including potential increases in inventory levels relative to sales, slower sales growth, tighter inventory management, or shifts in product demand or supply chain dynamics. The reduction from 5.34 to 3.78 indicates that inventory is being held longer before sale, which could have implications for inventory carrying costs and cash flow management.
Overall, the data portrays a trend of decreasing efficiency in inventory management, necessitating further analysis to understand the underlying causes and to assess the impact on the company's operational and financial performance.
Peer comparison
Jun 30, 2025