Acuity Brands Inc (AYI)
Inventory turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,334,900 | 3,541,700 | 3,539,100 | 1,986,000 | 1,923,900 |
| Inventory | US$ in thousands | 387,600 | 368,500 | 485,700 | 398,700 | 320,100 |
| Inventory turnover | 8.60 | 9.61 | 7.29 | 4.98 | 6.01 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,334,900K ÷ $387,600K
= 8.60
Acuity Brands Inc's inventory turnover has fluctuated over the five-year period from August 31, 2020, to August 31, 2024. Inventory turnover measures how efficiently a company manages its inventory by calculating the number of times inventory is sold and replaced within a specific period.
The inventory turnover ratio for Acuity Brands Inc in 2024 was 8.60, showing a decrease from the previous year's ratio of 9.61 in 2023. This decrease may indicate that the company took longer to sell its inventory in 2024 compared to 2023. However, a higher inventory turnover ratio signifies that the company is selling its inventory more quickly, which can be seen in the performance of Acuity Brands Inc in 2023.
Comparing the data further, we observe that the inventory turnover ratios were 7.29 in 2022, 4.98 in 2021, and 6.01 in 2020. The lower ratios in 2021 and 2020 suggest that Acuity Brands Inc took more time to sell its inventory during those years. The ratio of 9.61 in 2023 was a significant improvement over the prior years, indicating better inventory management efficiency during that period.
Overall, changes in the inventory turnover ratio for Acuity Brands Inc may reflect variations in sales volume, inventory management practices, or demand fluctuations in the company's industry. It is important for stakeholders to monitor these trends to assess the company's operational efficiency and ability to adapt to changing market conditions.
Peer comparison
Aug 31, 2024