Hawkins Inc (HWKN)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 748,893 | 733,321 | 721,788 | 717,621 | 725,526 | 740,437 | 757,136 | 769,314 | 769,979 | 764,213 | 734,376 | 685,548 | 628,021 | 572,588 | 534,166 | 503,180 | 473,109 | 451,653 | 435,893 | 432,938 |
| Inventory | US$ in thousands | 83,512 | 81,634 | 81,565 | 81,199 | 74,600 | 68,805 | 68,500 | 76,938 | 88,777 | 101,581 | 113,062 | 104,988 | 94,985 | 76,242 | 70,338 | 67,943 | 63,864 | 64,657 | 63,194 | 63,389 |
| Inventory turnover | 8.97 | 8.98 | 8.85 | 8.84 | 9.73 | 10.76 | 11.05 | 10.00 | 8.67 | 7.52 | 6.50 | 6.53 | 6.61 | 7.51 | 7.59 | 7.41 | 7.41 | 6.99 | 6.90 | 6.83 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $748,893K ÷ $83,512K
= 8.97
Hawkins Inc's inventory turnover has shown a fluctuating trend over the past few years. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. A higher turnover ratio generally suggests efficient inventory management and indicates that inventory is sold quickly, reducing the risk of obsolete inventory or storage costs.
From June 30, 2020, to March 31, 2023, Hawkins Inc's inventory turnover steadily increased from 6.83 to 8.67, indicating an improving trend in the company's ability to manage its inventory effectively. However, from March 31, 2023, to December 31, 2024, the inventory turnover ratio fluctuated between 8.97 and 10.76 before slightly decreasing to 8.98 by December 31, 2024.
A closer analysis of the inventory turnover trend reveals a peak at 11.05 on September 30, 2023, indicating a significant increase in the rate at which inventory was turned into sales during that period. However, the ratio declined thereafter, reaching a low of 6.50 by September 30, 2022.
Overall, while Hawkins Inc's inventory turnover has shown variations, the company has generally maintained a healthy turnover ratio above 6.0, suggesting efficient inventory management practices. It is essential for the company to monitor this ratio continually to ensure optimal inventory levels and avoid potential issues related to overstocking or understocking.
Peer comparison
Mar 31, 2025
Mar 31, 2025