Energizer Holdings Inc (ENR)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,435,900 | 3,037,100 | 2,480,600 | 2,273,900 | 2,241,700 |
| Inventory | US$ in thousands | 649,700 | 771,600 | 728,300 | 511,300 | 469,300 |
| Inventory turnover | 3.75 | 3.94 | 3.41 | 4.45 | 4.78 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,435,900K ÷ $649,700K
= 3.75
The inventory turnover of Energizer Holdings Inc has shown some variability over the past five years, with the ratio ranging from 2.50 to 3.25. This ratio measures the number of times the company's inventory is sold and replaced over a given period. A higher inventory turnover indicates more efficient management of inventory, as it suggests that the company is selling and restocking its inventory more frequently.
The decrease in inventory turnover from 3.25 in 2020 to 2.50 in 2022 could indicate a potential inefficiency in managing inventory during that period. However, the ratio rebounded to 2.83 in 2023, suggesting improvements in inventory management over the latest year. Overall, it's important for the company to maintain a balance in inventory levels to ensure that products are available to meet demand without carrying excess stock, which could tie up capital and result in higher holding costs.
It's also important to compare the inventory turnover ratio with industry benchmarks to assess Energizer Holdings Inc's performance in managing its inventory relative to its peers. Additionally, further analysis of the company's inventory levels, sales trends, and supply chain efficiencies may provide deeper insights into the factors driving the changes in inventory turnover over the years.
Peer comparison
Sep 30, 2023