Griffon Corporation (GFF)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,328,330 | 2,683,620 | 3,089,040 | 2,148,530 | 2,311,410 |
| Inventory | US$ in thousands | 425,489 | 507,130 | 669,193 | 472,794 | 320,188 |
| Inventory turnover | 5.47 | 5.29 | 4.62 | 4.54 | 7.22 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,328,330K ÷ $425,489K
= 5.47
The inventory turnover ratio for Griffon Corporation has fluctuated over the last five years. It increased from 4.54 in 2021 to 5.29 in 2023 before reaching its peak at 7.22 in 2020. However, in the most recent fiscal year ending September 30, 2024, the inventory turnover ratio slightly decreased to 5.47.
A higher inventory turnover ratio indicates that Griffon Corporation is selling its inventory more quickly, which can be a positive sign of efficiency in managing inventory. Conversely, a lower ratio may suggest slower sales turnover and potential excess inventory levels.
Overall, Griffon Corporation has maintained a relatively healthy inventory turnover ratio over the years, indicating efficient management of its inventory levels. However, it is essential for the company to monitor and analyze this ratio continually to ensure optimal inventory management practices.