Capri Holdings Ltd (CPRI)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,398,000 | 4,924,000 | 4,719,000 | 4,009,000 | 5,735,000 |
| Inventory | US$ in thousands | 862,000 | 1,057,000 | 1,096,000 | 736,000 | 827,000 |
| Inventory turnover | 6.26 | 4.66 | 4.31 | 5.45 | 6.93 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,398,000K ÷ $862,000K
= 6.26
The inventory turnover of Capri Holdings Ltd has varied over the past five years. In the latest fiscal year ending March 31, 2024, the company achieved an inventory turnover of 6.26 times. This indicates that, on average, the company sold and replaced its inventory about 6.26 times during the year.
Comparing this to the previous years, we see an increasing trend from the lowest turnover of 4.31 in 2022 to the highest turnover of 6.93 in 2020. This suggests that the company has been managing its inventory more efficiently in recent years, potentially by reducing excess inventory levels or improving inventory management practices.
A rising inventory turnover ratio generally indicates that a company is selling its inventory more quickly, which can lead to higher sales and profitability. However, a very high ratio could also indicate potential stockouts or lost sales due to understocking. Therefore, it is important for Capri Holdings Ltd to strike a balance between inventory turnover and ensuring that adequate inventory levels are maintained to meet demand without excessive costs or shortages.
Peer comparison
Mar 31, 2024