Haynes International Inc (HAYN)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 529,519 | 432,598 | 342,372 | 377,002 | 469,692 |
| Inventory | US$ in thousands | 414,077 | 357,556 | 248,495 | 246,124 | 258,802 |
| Inventory turnover | 1.28 | 1.21 | 1.38 | 1.53 | 1.81 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $529,519K ÷ $414,077K
= 1.28
The inventory turnover ratio for Haynes International Inc. has shown a declining trend over the past five years. In 2019, the inventory turnover ratio stood at 1.64, indicating that the company's inventory was turning over approximately 1.64 times during the year. However, this ratio has since decreased to 1.16 in 2023.
A decreasing inventory turnover ratio may suggest that the company is experiencing challenges in efficiently managing its inventory levels or that its sales are declining relative to its inventory levels. It could also indicate potential overstocking or obsolescence of inventory.
Further investigation into the company's inventory management practices and sales performance would be necessary to ascertain the reasons behind the declining trend in inventory turnover. It is important for stakeholders to monitor this trend closely to assess the company's inventory management efficiency and its potential impact on profitability.
Peer comparison
Sep 30, 2023