CSW Industrials Inc (CSWI)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 484,989 | 442,095 | 439,690 | 370,473 | 234,405 |
| Inventory | US$ in thousands | 194,876 | 150,749 | 161,569 | 150,114 | 98,086 |
| Inventory turnover | 2.49 | 2.93 | 2.72 | 2.47 | 2.39 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $484,989K ÷ $194,876K
= 2.49
CSW Industrials Inc's inventory turnover has shown a generally increasing trend over the past five years, starting at 2.39 in March 31, 2021, and reaching 2.49 in March 31, 2025. This indicates that the company is improving its efficiency in managing its inventory.
The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio suggests that inventory is moving more quickly, which is generally seen as a positive sign of operational efficiency and liquidity.
The significant increase in inventory turnover from 2021 to 2025 suggests that CSW Industrials Inc has been able to streamline its inventory management processes and reduce excess inventory holding costs. This could be due to better demand forecasting, improved inventory control systems, or more efficient production processes.
Overall, the increasing trend in inventory turnover is a positive indicator for CSW Industrials Inc, showing that the company is effectively managing its inventory levels and turning inventory into sales at a faster pace over the years. It reflects a potentially healthy supply chain and working capital management within the company.
Peer comparison
Mar 31, 2025