CACI International Inc (CACI)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	7,010,120	6,135,050	5,706,590	5,504,680	5,262,350
Inventory	US$ in thousands	118,439	130,591	99,362	79,696	65,167
Inventory turnover		59.19	46.98	57.43	69.07	80.75

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $7,010,120K ÷ $118,439K
= 59.19

CACI International Inc's inventory turnover has shown a declining trend over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by showing how many times the company's inventory is sold and replaced during a given period.

The decrease in inventory turnover from 80.75 in June 2020 to 59.19 in June 2024 indicates that the company is holding its inventory for a longer period before selling it. This may suggest that CACI International Inc is facing challenges in managing its inventory efficiently, which could lead to higher carrying costs and potential obsolescence risk.

Although a high inventory turnover ratio is generally preferred as it indicates efficient inventory management, it is also important to consider the industry norms and the nature of the company's business. Further analysis and comparison with industry peers would provide a more comprehensive understanding of CACI International Inc's inventory management efficiency.