Avnet Inc (AVT)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,990,700 | 23,354,700 | 21,345,300 | 17,294,000 | 15,570,900 |
| Inventory | US$ in thousands | 5,468,730 | 5,465,030 | 4,244,150 | 3,236,840 | 2,731,990 |
| Inventory turnover | 3.84 | 4.27 | 5.03 | 5.34 | 5.70 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $20,990,700K ÷ $5,468,730K
= 3.84
Avnet Inc's inventory turnover has shown a decreasing trend over the past five years. The ratio declined from 5.70 in 2020 to 3.84 in 2024. This suggests that the company is taking longer to sell its inventory, indicating a possible inefficiency in managing its inventory levels. A lower inventory turnover ratio may imply excess or obsolete inventory, which can tie up capital and lead to higher holding costs. It could also indicate potential difficulties in accurately forecasting demand or slow-moving inventory. Management may need to assess and improve inventory management practices to enhance operational efficiency and optimize working capital utilization.
Peer comparison
Jun 30, 2024