Cabot Corporation (CBT)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,034,000 | 3,092,000 | 3,436,000 | 2,610,000 | 2,114,000 |
| Inventory | US$ in thousands | 552,000 | 585,000 | 664,000 | 523,000 | 359,000 |
| Inventory turnover | 5.50 | 5.29 | 5.17 | 4.99 | 5.89 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,034,000K ÷ $552,000K
= 5.50
Cabot Corporation's inventory turnover has been relatively consistent over the past five years, ranging from 4.99 to 5.89 times. A higher inventory turnover ratio indicates that the company is selling through its inventory more quickly. In the case of Cabot Corporation, the average turnover ratio of around 5.37 suggests that the company is efficiently managing its inventory levels. However, it's important to note that a significant increase or decrease in inventory turnover could signal changes in demand, production efficiency, or inventory management practices, warranting further investigation.
Peer comparison
Sep 30, 2024