Hillenbrand Inc (HI)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,126,300 | 1,877,800 | 1,551,500 | 1,509,100 | 1,703,700 |
| Inventory | US$ in thousands | 525,200 | 592,600 | 485,600 | 411,600 | 385,400 |
| Inventory turnover | 4.05 | 3.17 | 3.20 | 3.67 | 4.42 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,126,300K ÷ $525,200K
= 4.05
The inventory turnover ratio for Hillenbrand Inc has shown some fluctuations over the past five years. In 2024, the inventory turnover ratio was 4.05, indicating that the company's inventory was sold and replaced 4.05 times during the year. This represents an improvement from the previous year where the ratio was 3.17.
Comparing the inventory turnover ratio to previous years, we see that it was 3.20 in 2022, 3.67 in 2021, and 4.42 in 2020. The downward trend from 2020 to 2022 and the subsequent increase in 2023 and 2024 suggest some variability in the company's efficiency in managing inventory levels.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory levels, while a lower ratio could imply overstocking or slow-moving inventory. It is important for Hillenbrand Inc to closely monitor its inventory turnover to ensure optimal use of its resources and to maintain a balance between inventory levels and sales.
Peer comparison
Sep 30, 2024