Greenbrier Companies Inc (GBX)
Inventory turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,502,900 | 2,671,700 | 1,516,300 | 2,439,100 | 2,667,100 |
| Inventory | US$ in thousands | 823,600 | 815,300 | 573,600 | 529,529 | 664,693 |
| Inventory turnover | 4.25 | 3.28 | 2.64 | 4.61 | 4.01 |
August 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,502,900K ÷ $823,600K
= 4.25
The inventory turnover ratio measures how efficiently a company manages its inventory. A higher turnover ratio typically indicates effective inventory management, while a lower ratio may suggest overstocking or slow sales. Let's analyze Greenbrier Cos., Inc.'s inventory turnover over the past five years based on the provided data.
In 2023, the inventory turnover ratio was 4.25, indicating that Greenbrier turned over its inventory approximately 4.25 times during the year. This is an improvement from the previous year's ratio of 3.28. The higher turnover suggests that Greenbrier was able to sell its inventory more frequently in 2023, which can be a sign of efficient inventory management or strong demand for its products.
Comparing 2023 to 2021, there was a notable increase in inventory turnover, from 2.64 to 4.25. This indicates a significant improvement in managing inventory levels and sales during this period. It suggests that Greenbrier streamlined its inventory management processes or experienced heightened demand for its products.
However, when compared to 2020 and 2019, while the 2023 turnover ratio was higher than 2019 (4.25 compared to 4.01), it was lower than the 2020 turnover ratio of 4.61. This suggests a potential decrease in the efficiency of managing inventory compared to 2020, but still an improvement from 2019.
In conclusion, Greenbrier Cos., Inc.'s inventory turnover has shown fluctuations over the past five years. The most recent year, 2023, demonstrated improved inventory turnover compared to the prior year, indicating better inventory management. However, it is essential to monitor how well the company maintains this efficiency in managing its inventory in the future.
Peer comparison
Aug 31, 2023