Broadridge Financial Solutions Inc (BR)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,965,500 | 5,479,500 | 5,377,000 | 4,533,300 | 4,086,700 |
| Inventory | US$ in thousands | 30,500 | 34,100 | 29,300 | 23,200 | 21,500 |
| Inventory turnover | 195.59 | 160.69 | 183.52 | 195.40 | 190.08 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,965,500K ÷ $30,500K
= 195.59
Broadridge Financial Solutions Inc's inventory turnover ratio has shown fluctuation over the past five years. The trend indicates a peak in inventory turnover in Jun 30, 2024, with a ratio of 195.59, followed by fluctuations in the preceding years, ranging from 160.69 to 195.40.
A high inventory turnover ratio signifies that the company is selling its inventory quickly, which is generally seen as a positive indicator of efficiency and strong sales performance. However, it is essential to note that an extremely high turnover ratio may also suggest that the company is not carrying enough inventory to meet customer demand or take advantage of bulk purchasing discounts.
Overall, Broadridge Financial Solutions Inc's inventory management appears efficient, with the company effectively managing its inventory levels to support sales growth and profitability. It is crucial for the company to maintain a balance between inventory turnover and ensuring it has enough inventory to meet customer demand effectively.
Peer comparison
Jun 30, 2024