Cavco Industries Inc (CVCO)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,367,890 | 1,587,780 | 1,218,410 | 869,074 | 831,256 |
| Inventory | US$ in thousands | 241,339 | 263,150 | 243,971 | 131,234 | 113,535 |
| Inventory turnover | 5.67 | 6.03 | 4.99 | 6.62 | 7.32 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,367,890K ÷ $241,339K
= 5.67
Cavco Industries Inc's inventory turnover has shown a declining trend over the past five years, dropping from 7.32 in 2020 to 5.67 in 2024. A decreasing inventory turnover may indicate inefficiencies in inventory management, slower sales turnover of inventory, or a buildup of excess inventory. This could potentially lead to increased carrying costs and the risk of obsolescence. Further analysis is required to determine the underlying reasons for the declining trend and to assess the impact on the company's overall operations and financial performance.