Walt Disney Company (DIS)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	20,542,000	20,670,000	18,582,000	16,256,000	20,346,000
Inventory	US$ in thousands	2,022,000	1,963,000	1,742,000	1,331,000	1,583,000
Inventory turnover		10.16	10.53	10.67	12.21	12.85

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $20,542,000K ÷ $2,022,000K
= 10.16

The inventory turnover ratio for Walt Disney Company has shown a consistent trend of stability over the past five years, with values ranging between 10.16 and 12.85. This ratio indicates how efficiently the company manages its inventory by measuring the number of times its inventory is sold and replaced within a given time period. A higher inventory turnover ratio generally suggests effective inventory management and a shorter holding period for inventory.

The slight decrease in the inventory turnover ratio from 12.85 in 2020 to 10.16 in 2024 may indicate a longer time taken to sell and replace inventory, potentially due to changes in consumer demand, supply chain disruptions, or other operational factors. However, it is essential to consider industry norms and company-specific factors when interpreting inventory turnover ratios. Overall, Walt Disney Company's inventory turnover ratios suggest the firm maintains a healthy balance between carrying adequate inventory levels and efficiently managing its inventory turnover.