Greif Bros Corporation (GEF)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,377,300 | 4,072,500 | 5,064,100 | 4,463,100 | 3,600,300 |
| Inventory | US$ in thousands | 399,500 | 338,600 | 403,300 | 499,200 | 293,600 |
| Inventory turnover | 10.96 | 12.03 | 12.56 | 8.94 | 12.26 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,377,300K ÷ $399,500K
= 10.96
The inventory turnover ratio is a key financial metric that measures how efficiently a company manages its inventory by calculating the number of times its inventory is sold and replaced within a given period. For Greif Bros Corporation, the inventory turnover ratio has fluctuated over the past five years:
- In October 31, 2020, the inventory turnover ratio was 12.26, indicating that the company sold and replaced its inventory approximately 12.26 times during that year.
- By October 31, 2021, the inventory turnover ratio decreased to 8.94, suggesting a slower rate of inventory turnover compared to the previous year.
- However, in the following years, the trend reversed with the ratios increasing to 12.56 in 2022, 12.03 in 2023, and then slightly dropping to 10.96 in 2024.
Overall, the inventory turnover ratios for Greif Bros Corporation show some variability, but they generally reflect a swift turnover of inventory, particularly in the most recent years. This signifies better inventory management and efficiency in converting inventory into sales, which can lead to improved cash flows and profitability for the company. It's essential for Greif Bros Corporation to monitor and sustain this trend to ensure optimal utilization of its inventory resources.