Cencora Inc. (COR)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 253,214,000 | 230,291,000 | 207,046,000 | 184,702,000 | 174,451,000 |
| Inventory | US$ in thousands | 17,454,800 | 15,556,400 | 15,368,400 | 12,589,300 | 11,060,300 |
| Inventory turnover | 14.51 | 14.80 | 13.47 | 14.67 | 15.77 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $253,214,000K ÷ $17,454,800K
= 14.51
The inventory turnover ratio measures the number of times a company's inventory is sold and replaced over a period. A higher turnover ratio generally indicates efficient inventory management.
Looking at Cencora Inc.'s inventory turnover data from Sep 30, 2023, to Sep 30, 2021, we observe a consistent and relatively high turnover ratio, with values of 14.51, 14.80, and 13.47, respectively. This indicates that the company has been effectively selling and replenishing its inventory over these years.
However, to gain deeper insights, it would be beneficial to compare this data with industry benchmarks or with the company's historical trends. If the turnover ratio is declining over time, it could be an indication of overstocking or slow-moving inventory, while a rapidly increasing turnover ratio could suggest potential inventory shortages.
Additionally, considering the seasonal nature of some businesses, a comparison with the previous year-end data would provide a more comprehensive understanding. Unfortunately, the inventory turnover ratio for Dec 31, 2020, is not available, making it difficult to precisely assess the year-on-year changes.
Overall, the consistent high inventory turnover ratios suggest efficient inventory management at Cencora Inc., but a closer examination paired with additional data would be necessary for a more comprehensive analysis.
Peer comparison
Sep 30, 2023