DXC Technology Co (DXC)

Inventory turnover

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cost of revenue US$ in thousands 9,770,000 10,576,000 11,246,000 12,683,000 14,086,000
Inventory US$ in thousands 570,000 652,000 727,000
Inventory turnover 19.73 19.45 19.38

March 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,770,000K ÷ $—K
= —

Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory. For DXC Technology Co, the inventory turnover has been relatively stable over the years.

As of March 31, 2023, the inventory turnover ratio stood at 19.73, which indicates that the company is able to sell and replace its inventory almost 20 times during the year. This high inventory turnover ratio suggests that DXC Technology Co is efficiently managing its inventory levels, ensuring that inventory doesn't remain stagnant for long periods.

The slight increase in the inventory turnover ratio from 2021 to 2023 indicates an improvement in the company's ability to sell off its inventory quickly. However, the lack of data for the inventory turnover ratio in 2024 and 2025 leaves room for uncertainty regarding the company's inventory management efficiency in those years.

Overall, a high inventory turnover ratio for DXC Technology Co signifies effective inventory management practices, which can lead to lower holding costs and potential for higher profitability.