Carpenter Technology Corporation (CRS)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	2,627,300	2,535,400	1,924,400	1,795,700	2,223,100
Inventory	US$ in thousands	735,400	639,700	496,100	425,700	724,300
Inventory turnover		3.57	3.96	3.88	4.22	3.07

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,627,300K ÷ $735,400K
= 3.57

The inventory turnover ratio for Carpenter Technology Corporation has shown some fluctuations over the past five years. In general, the company's inventory turnover has been relatively stable, ranging from a low of 3.07 in 2020 to a high of 4.22 in 2021.

A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient inventory management and strong sales performance. On the other hand, a lower inventory turnover ratio could suggest slower inventory sales and potential liquidity issues.

The downward trend from 2021 to 2024 may indicate that Carpenter Technology Corporation is taking longer to sell its inventory, which could be a concern if not managed carefully. It is important for the company to monitor and potentially optimize its inventory management practices to improve its inventory turnover ratio and overall operational efficiency.