Insteel Industries Inc (IIIN)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 479,566 | 583,790 | 629,522 | 469,053 | 416,831 |
| Inventory | US$ in thousands | 88,840 | 103,306 | 197,654 | 79,049 | 68,963 |
| Inventory turnover | 5.40 | 5.65 | 3.18 | 5.93 | 6.04 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $479,566K ÷ $88,840K
= 5.40
Inventory turnover is a crucial metric that measures how efficiently a company manages its inventories. Insteel Industries Inc's inventory turnover has fluctuated over the past five years, ranging from 3.18 in 2022 to 6.04 in 2020. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally favorable.
In 2024, Insteel Industries Inc's inventory turnover was 5.40, showing a slight decrease from the previous year's ratio of 5.65. This indicates that the company took approximately 5.40 times to sell and replace its inventory during the year. While the ratio decreased compared to the previous year, it is still within a reasonable range.
It is essential to consider industry benchmarks when analyzing inventory turnover ratios to understand how Insteel Industries Inc's performance compares to its peers. Overall, a consistent and healthy inventory turnover ratio reflects a well-managed inventory system and efficient sales operations.
Peer comparison
Sep 30, 2024