Insteel Industries Inc (IIIN)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 451,256 | 437,329 | 416,026 |
| Inventory | US$ in thousands | 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 | 70,851 | 104,624 | 117,227 |
| Inventory turnover | 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 | 6.37 | 4.18 | 3.55 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $573,088K ÷ $94,142K
= 6.09
Inventory turnover for Insteel Industries Inc has shown fluctuations over the past few quarters. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times the company sells and replaces its inventory during a specific period. A higher inventory turnover ratio is generally preferred as it suggests that the company is efficiently managing its inventory levels.
Insteel Industries Inc's inventory turnover has ranged from a low of 2.51 to a high of 6.54 over the past 20 quarters. The trend shows some variability, with a general increase from the low of 2.51 in June 2022 to the high of 6.54 in September 2020, followed by fluctuations in subsequent quarters. The most recent inventory turnover figure, at 6.09 in December 2023, indicates that the company is selling and restocking its inventory more frequently compared to previous periods.
Overall, while Insteel Industries Inc has experienced fluctuations in its inventory turnover ratio, the recent increase to 6.09 suggests an improvement in the efficiency of the company's inventory management. This could potentially lead to cost savings and improved profitability in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023