The Hain Celestial Group Inc (HAIN)

Inventory turnover

		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	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,825,329	1,876,491	1,990,128	1,927,504	1,909,164	1,884,159	1,758,019	1,774,320	1,776,938	1,734,829	1,707,207	1,775,851	1,844,023	1,449,235	1,533,409	1,508,132	1,480,313	1,488,614	1,532,035	1,625,137
Inventory	US$ in thousands	274,128	281,399	295,276	313,335	310,341	316,345	324,525	315,882	308,034	294,428	289,239	280,176	285,410	313,898	311,988	292,968	248,170	238,133	283,127	301,351
Inventory turnover		6.66	6.67	6.74	6.15	6.15	5.96	5.42	5.62	5.77	5.89	5.90	6.34	6.46	4.62	4.91	5.15	5.96	6.25	5.41	5.39

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,825,329K ÷ $274,128K
= 6.66

The inventory turnover ratio of The Hain Celestial Group Inc has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times it sells and replaces its inventory during a specific period.

On a quarterly basis, the inventory turnover ratio ranged from a low of 4.62 in March 2021 to a high of 6.74 in December 2023. Overall, the trend indicates a relatively stable performance in managing inventory turnover, with an average ratio of around 5.90 over the period reviewed.

The company's ability to maintain a consistently solid inventory turnover ratio suggests effective inventory management practices, where inventory levels are closely monitored and efficiently utilized to generate sales. A higher inventory turnover ratio typically indicates that the company is selling its products quickly and efficiently, reducing the risk of obsolete inventory and maximizing cash flow.

However, it is essential to consider industry norms and benchmarks when evaluating inventory turnover ratios, as the optimal ratio can vary depending on the nature of the business and the industry in which it operates. Keeping a close eye on inventory turnover trends can help The Hain Celestial Group Inc assess its operational efficiency and make informed decisions regarding inventory management strategies.