Hillenbrand Inc (HI)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	1,877,800	1,551,500	1,509,100	1,703,700	1,184,300
Inventory	US$ in thousands	592,600	485,600	411,600	385,400	157,700
Inventory turnover		3.17	3.20	3.67	4.42	7.51

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,877,800K ÷ $592,600K
= 3.17

The inventory turnover ratio for Hillenbrand Inc has exhibited a declining trend over the past five years, decreasing from 6.71 in 2019 to 3.17 in 2023. This suggests that the company's ability to efficiently manage its inventory has weakened during this period. A lower inventory turnover can indicate excess or obsolete inventory, potentially leading to increased holding costs and reduced liquidity. It may be beneficial for the company to reassess its inventory management strategies to improve operational efficiency and optimize working capital utilization.

Peer comparison

Sep 30, 2023

Company name

Symbol

Inventory turnover

Hillenbrand Inc

3.17