Commercial Metals Company (CMC)
Inventory turnover
Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 7,291,200 | 7,677,410 | 7,630,300 | 6,142,150 | 5,089,520 |
Inventory | US$ in thousands | 971,755 | 1,035,580 | 1,169,700 | 935,387 | 625,393 |
Inventory turnover | 7.50 | 7.41 | 6.52 | 6.57 | 8.14 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,291,200K ÷ $971,755K
= 7.50
Commercial Metals Company's inventory turnover has been relatively stable over the past five years, with figures ranging from 6.52 to 8.14. The inventory turnover ratio indicates how many times the company's inventory is sold and replaced over a specific period.
In this case, the ratios suggest that Commercial Metals Company has efficiently managed its inventory levels. A higher turnover ratio indicates that the company is selling its inventory quickly, which can reduce storage costs and minimize the risk of obsolete inventory.
The slight fluctuations in the inventory turnover ratio over the years may reflect changes in sales demand and inventory management strategies. Overall, the company's consistent inventory turnover ratios demonstrate effective inventory control and management, contributing to its operational efficiency.
Peer comparison
Aug 31, 2024