Cencora Inc. (COR)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 284,049,000 | 253,214,000 | 230,291,000 | 207,046,000 | 184,702,000 |
| Inventory | US$ in thousands | 18,998,800 | 17,454,800 | 15,556,400 | 15,368,400 | 12,589,300 |
| Inventory turnover | 14.95 | 14.51 | 14.80 | 13.47 | 14.67 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $284,049,000K ÷ $18,998,800K
= 14.95
Inventory turnover measures how efficiently a company manages its inventory by indicating the number of times the inventory is sold and replaced over a specific period. In the case of Cencora Inc., the inventory turnover ratio has been relatively consistent over the past five years, ranging from 13.47 to 14.95. This indicates that the company effectively manages its inventory and has a healthy turnover rate.
A higher inventory turnover ratio, such as the ones observed for Cencora Inc., implies that the company is selling its inventory quickly and efficiently. This can result in reduced holding costs and the liberation of capital for other investments or operations.
Consistency in the inventory turnover ratio over the years suggests that Cencora Inc. has a stable demand for its products and effectively controls its inventory levels to meet this demand. It also indicates that the company has effective inventory management policies in place.
Overall, the inventory turnover ratio of Cencora Inc. reflects positively on its operational efficiency and inventory management practices, contributing to potential profitability and sustainable growth in the long run.
Peer comparison
Sep 30, 2024