Avnet Inc (AVT)
Inventory turnover
| Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 20,990,690 | 21,807,180 | 22,525,630 | 22,960,320 | 23,354,740 | 23,211,170 | 23,183,510 | 22,402,270 | 21,345,310 | 20,334,080 | 19,007,330 | 18,012,070 | 17,294,050 | 16,396,890 | 15,839,410 | 15,691,680 | 15,570,870 | 15,972,020 | 16,255,770 | 16,665,530 |
| Inventory | US$ in thousands | 5,468,730 | 5,751,870 | 6,116,000 | 5,755,050 | 5,465,030 | 5,354,010 | 4,972,900 | 4,654,980 | 4,244,150 | 3,680,820 | 3,542,720 | 3,283,820 | 3,236,840 | 2,760,160 | 2,816,420 | 2,944,670 | 2,731,990 | 2,745,220 | 2,908,580 | 3,025,980 |
| Inventory turnover | 3.84 | 3.79 | 3.68 | 3.99 | 4.27 | 4.34 | 4.66 | 4.81 | 5.03 | 5.52 | 5.37 | 5.49 | 5.34 | 5.94 | 5.62 | 5.33 | 5.70 | 5.82 | 5.59 | 5.51 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,990,690K ÷ $5,468,730K
= 3.84
Avnet Inc's inventory turnover has been fluctuating over the past few quarters, with a general decreasing trend since the beginning of the data series. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory by quickly selling its products.
In the latest quarter, the inventory turnover ratio was 3.84, which means that Avnet Inc sold and replaced its inventory approximately 3.84 times during that period. Despite a slight increase from the prior quarter, the current ratio is lower compared to the ratios a few quarters ago. This indicates that the company might be facing challenges in effectively managing its inventory or experiencing difficulties in selling its products.
It is essential for Avnet Inc to closely monitor its inventory turnover ratio to ensure optimal inventory management. A declining trend in this ratio could suggest potential issues such as overstocking, slow-moving inventory, or changing customer demands. By addressing these factors and improving inventory turnover, Avnet Inc can enhance its operational efficiency and profitability.
Peer comparison
Jun 30, 2024
Jun 30, 2024