ESCO Technologies Inc (ESE)
Inventory turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 622,741 | 608,357 | 598,196 | 588,145 | 580,377 | 570,276 | 557,456 | 543,535 | 525,457 | 499,394 | 478,550 | 453,728 | 445,045 | 447,441 | 441,517 | 451,206 | 458,311 | 454,616 | 451,966 | 442,271 |
| Inventory | US$ in thousands | 209,164 | 219,312 | 211,338 | 202,577 | 184,067 | 192,493 | 185,753 | 181,743 | 162,403 | 178,168 | 175,152 | 165,021 | 147,148 | 141,113 | 145,342 | 144,054 | 135,296 | 152,264 | 141,027 | 133,977 |
| Inventory turnover | 2.98 | 2.77 | 2.83 | 2.90 | 3.15 | 2.96 | 3.00 | 2.99 | 3.24 | 2.80 | 2.73 | 2.75 | 3.02 | 3.17 | 3.04 | 3.13 | 3.39 | 2.99 | 3.20 | 3.30 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $622,741K ÷ $209,164K
= 2.98
ESCO Technologies Inc's inventory turnover has shown some fluctuations over the past few years. The ratio measures how efficiently the company is managing its inventory by indicating how many times the company's inventory is sold and replaced over a given period.
Looking at the trend, we see that the inventory turnover ratio has ranged from 2.73 to 3.39 over the last 20 quarters. The average inventory turnover ratio appears to be around 3.00, indicating that, on average, ESCO Technologies Inc sells and replaces its inventory three times a year.
The company's inventory turnover has shown a downward trend in recent quarters, with a slight decrease from 3.20 in the first quarter of 2020 to 2.98 in the most recent quarter ending September 30, 2024. This may suggest that the company is holding onto its inventory for slightly longer periods, which could potentially tie up more capital in unsold goods.
It is essential for ESCO Technologies Inc to monitor and manage its inventory turnover effectively to ensure that it does not tie up excess capital in unsold inventory. This could impact the company's liquidity and profitability in the long run. Further analysis of the company's inventory management practices and market conditions could provide more insights into the reasons behind the fluctuations in inventory turnover.
Peer comparison
Sep 30, 2024
Sep 30, 2024