Griffon Corporation (GFF)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,313,836 | 2,330,245 | 2,338,800 | 2,634,196 | 2,624,500 | 3,176,773 | 3,264,713 | 3,098,053 | 3,086,838 | 2,274,239 | 2,210,951 | 2,123,238 | 2,144,843 | 1,825,760 | 1,801,343 | 1,749,153 | 1,699,336 | 2,239,444 | 2,195,667 | 2,172,394 |
| Inventory | US$ in thousands | 425,489 | 430,708 | 443,970 | 478,609 | 507,130 | 554,958 | 574,086 | 646,352 | 669,193 | 708,178 | 687,011 | 531,182 | 472,794 | 510,309 | 484,753 | 445,022 | 320,188 | 411,028 | 462,119 | 467,069 |
| Inventory turnover | 5.44 | 5.41 | 5.27 | 5.50 | 5.18 | 5.72 | 5.69 | 4.79 | 4.61 | 3.21 | 3.22 | 4.00 | 4.54 | 3.58 | 3.72 | 3.93 | 5.31 | 5.45 | 4.75 | 4.65 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,313,836K ÷ $425,489K
= 5.44
The inventory turnover ratio for Griffon Corporation has shown varying trends over the past few quarters. The ratio measures how many times a company's inventory is sold and replaced over a period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
Looking at the data, we can see that the inventory turnover ratio has been relatively stable in recent quarters, ranging between 5.18 and 5.72. This suggests that Griffon Corporation has been effectively managing its inventory levels and translating them into sales.
However, there was a noticeable improvement in inventory turnover from the fourth quarter of 2022 to the second quarter of 2023, where the ratio increased from 4.79 to 5.72. This could indicate that the company implemented more efficient inventory management practices during this period.
It is also important to note that the inventory turnover ratio has been generally increasing over the past few quarters, which is a positive sign as it indicates that the company is selling its inventory at a faster rate.
Overall, the inventory turnover ratio for Griffon Corporation has been relatively stable with some improvements seen in recent quarters, suggesting effective inventory management practices and efficient utilization of inventory.