Ethan Allen Interiors Inc (ETD)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 568,607 | 658,719 | 680,112 | 606,073 | 266,705 |
| Inventory | US$ in thousands | 142,040 | 149,195 | 176,504 | 143,978 | 126,101 |
| Inventory turnover | 4.00 | 4.42 | 3.85 | 4.21 | 2.12 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $568,607K ÷ $142,040K
= 4.00
Ethan Allen Interiors Inc's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio, which indicates how efficiently the company is managing its inventory, was 4.00 in 2024, 4.42 in 2023, 3.85 in 2022, 4.21 in 2021, and 2.12 in 2020.
The trend shows that the company has generally been able to sell its inventory more frequently in recent years, with a peak of 4.42 in 2023. A lower inventory turnover ratio suggests that the company may have excess or slow-moving inventory, which could tie up resources and potentially lead to increased holding costs.
However, it is essential to consider industry norms and specific circumstances when interpreting inventory turnover ratios. Overall, Ethan Allen Interiors Inc should continue to monitor and manage its inventory effectively to optimize its operations and profitability.
Peer comparison
Jun 30, 2024