Azenta Inc (AZTA)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 918,866 | 808,375 | 606,393 | 601,077 | 825,248 |
| Inventory | US$ in thousands | 115,256 | 128,198 | 85,544 | 60,398 | 37,125 |
| Inventory turnover | 7.97 | 6.31 | 7.09 | 9.95 | 22.23 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $918,866K ÷ $115,256K
= 7.97
Azenta Inc's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels. A higher inventory turnover is generally preferred as it indicates that the company is selling its products quickly and efficiently.
In this case, Azenta Inc's inventory turnover has ranged from 6.31 to 22.23 over the past five years. The peak inventory turnover of 22.23 in 2020 suggests that the company was able to sell its inventory more than 22 times during that year, indicating a rapid turnover of inventory.
However, the inventory turnover ratio decreased in the subsequent years, with the lowest turnover of 6.31 in 2023. This may indicate a decrease in sales relative to inventory levels or potentially inefficient inventory management during that year.
Overall, Azenta Inc's inventory turnover has been relatively healthy, with the company consistently able to sell its inventory multiple times over the years. However, management should closely monitor inventory levels and sales performance to ensure optimal efficiency in inventory turnover in the coming years.
Peer comparison
Sep 30, 2024