Cavco Industries Inc (CVCO)
Inventory turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,367,890 | 1,402,526 | 1,427,443 | 1,502,163 | 1,587,781 | 1,607,921 | 1,555,792 | 1,405,614 | 1,218,409 | 1,078,157 | 991,185 | 926,005 | 869,074 | 836,884 | 821,217 | 826,990 | 831,256 | 813,139 | 783,951 | 765,857 |
| Inventory | US$ in thousands | 241,339 | 236,649 | 244,476 | 253,986 | 263,150 | 215,458 | 233,965 | 254,722 | 243,971 | 200,313 | 190,394 | 150,917 | 131,234 | 110,624 | 111,872 | 106,396 | 113,535 | 110,144 | 115,205 | 118,532 |
| Inventory turnover | 5.67 | 5.93 | 5.84 | 5.91 | 6.03 | 7.46 | 6.65 | 5.52 | 4.99 | 5.38 | 5.21 | 6.14 | 6.62 | 7.57 | 7.34 | 7.77 | 7.32 | 7.38 | 6.80 | 6.46 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,367,890K ÷ $241,339K
= 5.67
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
For Cavco Industries Inc, the inventory turnover ratio has fluctuated over the past 20 quarters, ranging from a low of 4.99 to a high of 7.77. Overall, the trend shows some variability but with a general consistency in maintaining a solid inventory turnover ratio.
Analyzing the data further, we can see that the average inventory turnover ratio for the period is approximately 6.51. This indicates that, on average, Cavco Industries Inc has been able to turn over its inventory 6.51 times during the given period.
It is worth noting that a high inventory turnover ratio can indicate effective inventory management, minimizing carrying costs and potential obsolescence. However, it can also suggest challenges in meeting customer demand if inventory levels are too low.
In conclusion, while Cavco Industries Inc has demonstrated fairly consistent inventory turnover ratios over the analyzed period, further analysis and comparison with industry benchmarks would provide more insights into the company's inventory management efficiency.