Cabot Corporation (CBT)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,092,000 | 3,436,000 | 2,610,000 | 2,114,000 | 2,652,000 |
| Inventory | US$ in thousands | 585,000 | 664,000 | 523,000 | 359,000 | 466,000 |
| Inventory turnover | 5.29 | 5.17 | 4.99 | 5.89 | 5.69 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,092,000K ÷ $585,000K
= 5.29
The inventory turnover ratio of Cabot Corp. has fluctuated over the past five years, ranging from 4.99 to 5.89. This ratio indicates how efficiently the company manages its inventory by measuring the number of times the inventory is sold and replaced over a period. Generally, a higher inventory turnover ratio is favorable as it suggests that inventory is being sold quickly and efficiently.
The ratio of 5.29 in September 2023 and 5.17 in September 2022 demonstrate an effective management of inventory during these periods. However, the ratio decreased to 4.99 in September 2021, suggesting a potential slowdown in the usage or turnover of inventory. It subsequently rebounded to 5.89 in September 2020 and 5.69 in September 2019, indicating improved efficiency in managing inventory during these years.
A consistently high inventory turnover ratio could signify strong sales and effective inventory management. However, it's essential to also consider industry norms and the specific characteristics of Cabot Corp.'s business to understand the implications of these ratios fully. Despite the fluctuations, Cabot Corp. appears to have maintained relatively healthy levels of inventory turnover, reflecting efficient utilization of its inventory resources.
Peer comparison
Sep 30, 2023