ESCO Technologies Inc (ESE)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 622,741 | 580,377 | 525,457 | 445,045 | 458,311 |
| Inventory | US$ in thousands | 209,164 | 184,067 | 162,403 | 147,148 | 135,296 |
| Inventory turnover | 2.98 | 3.15 | 3.24 | 3.02 | 3.39 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $622,741K ÷ $209,164K
= 2.98
ESCO Technologies Inc's inventory turnover has shown a slight declining trend over the past five years, decreasing from 3.39 in 2020 to 2.98 in 2024. This indicates that the company is taking longer to sell its inventory, which can tie up capital and potentially indicate inefficiencies in inventory management. However, it's important to note that inventory turnover ratios can vary significantly by industry, so it would be valuable to compare ESCO's ratio with industry averages for a more contextual understanding. Further analysis of the company's inventory management practices and supply chain efficiency may be warranted to address the declining trend in inventory turnover.
Peer comparison
Sep 30, 2024