Insteel Industries Inc (IIIN)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 583,790 | 629,522 | 469,053 | 416,831 | 425,652 |
| Inventory | US$ in thousands | 103,306 | 197,654 | 79,049 | 68,963 | 70,851 |
| Inventory turnover | 5.65 | 3.18 | 5.93 | 6.04 | 6.01 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $583,790K ÷ $103,306K
= 5.65
The inventory turnover of Insteel Industries, Inc. has varied over the past five years. In particular, the turnover ratio was 5.65 in September 2023, which indicates that the company's inventory was sold and replaced approximately 5.65 times during the year. This represents an improvement compared to the previous year, where the turnover was 3.18.
The increase in inventory turnover suggests that the company has been more efficient in managing its inventory, possibly through better inventory control or demand forecasting. A higher turnover ratio can also indicate effective sales and marketing strategies, as well as strong customer demand for the company's products.
Comparing the turnover ratio with industry benchmarks and the company's historical performance can provide additional insights into its inventory management efficiency and operational effectiveness.
Peer comparison
Sep 30, 2023