Dynatrace Holdings LLC (DT)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	1,014,500	863,178	707,877	517,396	616,638
Inventory	US$ in thousands	—	83,029	62,601	48,986	38,509
Inventory turnover		—	10.40	11.31	10.56	16.01

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,014,500K ÷ $—K
= —

Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory. In the case of Dynatrace Holdings LLC, the inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio was 16.01 in 2020, indicating that the company sold and replaced its inventory 16.01 times during the year. However, this ratio decreased to 10.56 in 2021, increased to 11.31 in 2022, and then further decreased to 10.40 in 2023.

A decreasing trend in inventory turnover may imply inefficiencies in inventory management, such as overstocking or slow-moving inventory. It could also indicate potential issues with sales and demand forecasting. Further analysis is required to understand the specific reasons behind the fluctuations in the inventory turnover ratio for Dynatrace Holdings LLC and to determine if any corrective actions are needed to optimize inventory management practices.