Berry Global Group Inc (BERY)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,330,000 | 11,594,000 | 13,262,000 | 12,572,000 | 10,554,000 |
| Inventory | US$ in thousands | 1,631,000 | 1,557,000 | 1,802,000 | 1,907,000 | 1,268,000 |
| Inventory turnover | 6.95 | 7.45 | 7.36 | 6.59 | 8.32 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,330,000K ÷ $1,631,000K
= 6.95
The inventory turnover ratio for Berry Global Group Inc has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is managing its inventory by comparing the cost of goods sold to its average inventory level.
In 2024, the inventory turnover ratio was 6.95, which suggests that the company converted its inventory into sales approximately 6.95 times during the year. This is a decrease from the previous year's ratio of 7.45. The lower ratio could indicate that the company is holding onto its inventory for a longer period, which may increase carrying costs and risk of obsolescence.
Comparing to 2022 and 2021, where the inventory turnover ratios were 7.36 and 6.59 respectively, there seems to be a minor variation in efficiency. However, in 2020, the company achieved a relatively higher ratio of 8.32, indicating a more rapid turnover of inventory compared to the other years.
Overall, the trend in inventory turnover for Berry Global Group Inc has been somewhat inconsistent, with some years showing better efficiency in managing inventory turnover than others. It would be advisable for the company to further analyze the drivers behind these fluctuations to potentially improve inventory management practices and optimize working capital utilization.
Peer comparison
Sep 30, 2024