Acuity Brands Inc (AYI)
Inventory turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,541,700 | 3,539,100 | 1,986,000 | 1,923,900 | 2,193,000 |
| Inventory | US$ in thousands | 368,500 | 485,700 | 398,700 | 320,100 | 340,800 |
| Inventory turnover | 9.61 | 7.29 | 4.98 | 6.01 | 6.43 |
August 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,541,700K ÷ $368,500K
= 9.61
Based on the provided data, it is evident that Acuity Brands, Inc. has experienced fluctuations in its inventory turnover ratio over the past five years. The inventory turnover ratio measures the efficiency of a company in managing its inventory by indicating how many times the inventory is sold and replaced within a given period.
The inventory turnover ratio for Aug 31, 2023, stands at 6.08, indicating an increase from the previous year. This suggests that the company's inventory is being sold and replaced more frequently, which could reflect efficient inventory management or increased sales. Comparing this to the ratios of the previous years, it is evident that there have been fluctuations in the inventory turnover ratio, with the lowest ratio recorded in Aug 31, 2022, at 4.80.
These fluctuations may indicate changes in the company's sales volume, production efficiency, inventory holding policies, or market demand for its products. Analyzing the trend in inventory turnover can provide valuable insights into the company's operational effectiveness and the impact of its inventory management strategies on its financial performance.
Peer comparison
Aug 31, 2023