Ethan Allen Interiors Inc (ETD)
Inventory turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 568,607 | 582,444 | 608,876 | 629,380 | 658,719 | 686,838 | 694,316 | 700,025 | 680,112 | 645,263 | 637,639 | 621,686 | 606,073 | 496,284 | 404,727 | 325,932 | 266,705 | 306,136 | 319,746 | 330,985 |
| Inventory | US$ in thousands | 142,040 | 144,474 | 140,939 | 149,623 | 149,195 | 151,655 | 159,874 | 167,656 | 176,504 | 182,689 | 164,550 | 158,735 | 143,978 | 135,686 | 126,748 | 127,047 | 126,101 | 138,774 | 138,997 | 151,421 |
| Inventory turnover | 4.00 | 4.03 | 4.32 | 4.21 | 4.42 | 4.53 | 4.34 | 4.18 | 3.85 | 3.53 | 3.88 | 3.92 | 4.21 | 3.66 | 3.19 | 2.57 | 2.12 | 2.21 | 2.30 | 2.19 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $568,607K ÷ $142,040K
= 4.00
Ethan Allen Interiors Inc's inventory turnover has fluctuated over the past several quarters, ranging from a low of 2.12 to a high of 4.53. The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given period, indicating the efficiency of inventory management.
The generally increasing trend in inventory turnover from 2019 to mid-2023 suggests an improvement in the company's ability to sell its inventory. However, the slight decrease in the latest quarter's inventory turnover may indicate a potential slowdown in inventory management efficiency.
A higher inventory turnover ratio indicates that Ethan Allen Interiors Inc is selling its inventory more frequently, which could be a positive sign of strong sales. On the other hand, a lower ratio may suggest excess inventory levels or difficulties in selling products.
It is important for the company to strike a balance in managing inventory levels to ensure optimal utilization of resources while meeting customer demand. Further analysis of the reasons behind the fluctuations in inventory turnover would be necessary to assess the overall effectiveness of Ethan Allen Interiors Inc's inventory management strategies.