HP Inc (HPQ)
Inventory turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 41,496,000 | 42,210,000 | 43,461,000 | 44,851,000 | 48,036,000 | 50,647,000 | 51,957,000 | 52,094,000 | 51,353,000 | 50,053,000 | 49,239,000 | 49,239,000 | 46,778,000 | 46,202,000 | 46,106,000 | 45,903,000 | 47,234,000 | 47,586,000 | 47,772,000 | 47,972,000 |
| Inventory | US$ in thousands | 6,928,000 | 6,862,000 | 7,197,000 | 7,221,000 | 7,344,000 | 7,614,000 | 8,192,000 | 8,944,000 | 9,018,000 | 7,930,000 | 8,165,000 | 7,502,000 | 6,668,000 | 5,963,000 | 5,896,000 | 6,354,000 | 4,946,000 | 5,734,000 | 5,716,000 | 5,394,000 |
| Inventory turnover | 5.99 | 6.15 | 6.04 | 6.21 | 6.54 | 6.65 | 6.34 | 5.82 | 5.69 | 6.31 | 6.03 | 6.56 | 7.02 | 7.75 | 7.82 | 7.22 | 9.55 | 8.30 | 8.36 | 8.89 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $41,496,000K ÷ $6,928,000K
= 5.99
Inventory turnover measures how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced over a specific period. Looking at the data for HP Inc's inventory turnover from Q1 2024 to Q2 2022, we can observe some fluctuations.
The inventory turnover ratio ranged from a high of 6.67 in Q4 2022 to a low of 5.83 in Q2 2022. The overall trend in inventory turnover appears relatively stable, with minor fluctuations between quarters. The consistent range of approximately 5.83 to 6.67 indicates that HP Inc is effectively managing its inventory levels and ensuring a steady flow of goods through the supply chain.
Although a higher inventory turnover ratio could indicate more efficient inventory management, it is essential to consider industry norms and company-specific factors when interpreting this ratio. Overall, HP Inc's inventory turnover ratios suggest a healthy level of inventory management efficiency over the periods analyzed.
Peer comparison
Jan 31, 2024
Jan 31, 2024