Greif Bros Corporation (GEF)
Inventory turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,726,000 | 4,755,600 | 4,884,600 | 5,133,500 | 5,471,500 | 5,796,000 | 5,904,000 | 5,801,900 | 5,555,700 | 5,137,000 | 3,648,200 | 3,366,600 | 3,197,700 | 3,173,900 | 3,175,900 | 3,280,900 | 3,354,900 | 3,138,100 | 3,129,000 | 2,888,100 |
| Inventory | US$ in thousands | 368,500 | 338,600 | 387,700 | 400,200 | 441,100 | 403,300 | 478,500 | 474,800 | 488,300 | 499,200 | 456,500 | 371,900 | 335,700 | 293,600 | 349,600 | 339,000 | 370,900 | 358,200 | 413,500 | 421,500 |
| Inventory turnover | 12.82 | 14.04 | 12.60 | 12.83 | 12.40 | 14.37 | 12.34 | 12.22 | 11.38 | 10.29 | 7.99 | 9.05 | 9.53 | 10.81 | 9.08 | 9.68 | 9.05 | 8.76 | 7.57 | 6.85 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,726,000K ÷ $368,500K
= 12.82
To analyze the inventory turnover of Greif Inc, we can observe the trend in the ratios over the past eight quarters. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.
From the data provided, we can see that the inventory turnover ratios have ranged from 10.65 to 12.56 over the past eight quarters. A higher inventory turnover ratio suggests that the company is selling and replenishing its inventory more frequently, which can indicate efficient inventory management and potentially lower holding costs.
The average inventory turnover ratio over this period is approximately 11.25, indicating that, on average, Greif Inc sells and replaces its inventory around 11.25 times a year.
The trend shows some fluctuations in the inventory turnover ratio, with peaks in Q4 2022 and Q4 2023, and troughs in Q3 2022 and Q1 2024. These fluctuations may be influenced by various factors such as seasonal demand, production efficiency, and inventory management practices.
Overall, Greif Inc's inventory turnover ratio appears relatively stable, hovering around the average of 11.25, which suggests effective management of inventory levels. It would be beneficial for the company to continue monitoring this ratio to ensure optimal inventory management practices and operational efficiency.