DXC Technology Co (DXC)

Inventory turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cost of revenue (ttm) US$ in thousands 10,096,000 10,632,000 10,852,000 11,058,000 10,925,000 10,730,000 10,893,000 11,035,000 11,246,000 11,665,000 12,045,000 12,358,000 12,683,000 13,083,000 13,237,000 13,712,000 14,086,000 14,298,000 14,792,000 14,908,000
Inventory US$ in thousands 555,000 559,000 652,000 570,000 1,230,000 662,000 676,000 652,000 600,000 534,000 659,000 727,000 586,000 729,000 667,000
Inventory turnover 19.33 19.49 16.92 19.73 9.48 18.19 18.28 19.45 21.80 24.79 20.81 19.38 24.40 20.29 22.35

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,096,000K ÷ $—K
= —

DXC Technology Co's inventory turnover has shown fluctuations over the past few years, indicating changes in the efficiency of managing its inventory. The company's inventory turnover ratio ranged from a high of 24.79 in September 30, 2021, to a low of 9.48 in December 31, 2022.

A higher inventory turnover ratio signifies that the company is selling its inventory quickly and efficiently, which is generally positive as it reduces the holding costs of inventory. Conversely, a lower ratio may indicate overstocking, obsolescence, or challenges in selling products.

DXC's inventory turnover has generally been above 15, which could suggest that the company has been effective in managing its inventory levels. However, the significant decrease to 9.48 in December 31, 2022, raises some concerns about the company's inventory management practices during that period.

It's important for DXC Technology Co to monitor its inventory turnover regularly to ensure that it aligns with industry standards and the company's operational efficiency goals. Analyzing the reasons behind the fluctuations and taking appropriate actions can help optimize inventory levels and improve overall business performance.