Fox Corp Class B (FOX)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	2,426,000	2,571,000	2,283,000	2,142,000	2,450,000
Inventory	US$ in thousands	626,000	543,000	791,000	729,000	856,000
Inventory turnover		3.88	4.73	2.89	2.94	2.86

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,426,000K ÷ $626,000K
= 3.88

Inventory turnover is a key financial ratio that indicates how efficiently a company is managing its inventory levels. A higher inventory turnover ratio generally suggests that a company is selling its inventory quickly and efficiently.

Analyzing Fox Corp Class B's inventory turnover ratio over the past five years, there seems to be some fluctuation in the efficiency of managing inventory. The inventory turnover ratio decreased from 2.86 in 2020 to 2.89 in 2022, indicating a slight improvement in inventory management efficiency. However, in 2023 and 2024, the inventory turnover ratio increased to 4.73 and 3.88, respectively.

The increase in the inventory turnover ratio in 2023 and 2024 suggests that Fox Corp Class B was able to sell its inventory at a faster rate compared to the previous years, reflecting a positive trend in inventory management. This improvement may be attributed to better demand forecasting, inventory control, and overall operational efficiency.

Overall, Fox Corp Class B's recent inventory turnover performance indicates a positive trend in managing inventory efficiently, which can lead to improved cash flow and profitability. However, further analysis and comparison with industry benchmarks are recommended to gain a better understanding of the company's inventory management effectiveness.