Insteel Industries Inc (IIIN)
Inventory turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 509,967 | 532,062 | 547,066 | 573,088 | 607,512 | 632,066 | 656,139 | 673,922 | 517,536 | 482,866 | 442,519 | 279,518 | 280,128 | 267,431 | 245,151 | 354,377 | 451,069 | 437,778 | 446,679 | 448,664 |
| Inventory | US$ in thousands | 88,840 | 89,379 | 92,530 | 94,142 | 103,306 | 133,126 | 136,492 | 171,185 | 197,654 | 192,447 | 127,049 | 81,558 | 79,049 | 71,158 | 68,623 | 64,276 | 68,963 | 74,269 | 71,685 | 65,252 |
| Inventory turnover | 5.74 | 5.95 | 5.91 | 6.09 | 5.88 | 4.75 | 4.81 | 3.94 | 2.62 | 2.51 | 3.48 | 3.43 | 3.54 | 3.76 | 3.57 | 5.51 | 6.54 | 5.89 | 6.23 | 6.88 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $509,967K ÷ $88,840K
= 5.74
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. In the case of Insteel Industries Inc, the analysis of the inventory turnover ratio over the past several quarters reveals fluctuations in the efficiency of managing inventory.
The inventory turnover ratio for Insteel Industries Inc has shown a mixed trend over the period of analysis. The ratio ranged from a low of 2.51 in the second quarter of 2022 to a high of 6.09 in the fourth quarter of 2023. Generally, a higher inventory turnover ratio is favorable as it indicates that the company is selling its inventory quickly, which can free up cash and reduce the risk of obsolescence.
In the earlier quarters, there was a significant increase in the inventory turnover ratio, reaching a peak of 6.88 in the fourth quarter of 2019. However, the ratio declined in the following quarters before showing some improvement in the most recent periods.
Overall, Insteel Industries Inc's inventory turnover ratio demonstrates some volatility, indicating fluctuations in the efficiency of managing inventory levels and sales. Further analysis and comparison with industry averages may provide additional insights into the company's inventory management practices.
Peer comparison
Sep 30, 2024
Sep 30, 2024