Korn Ferry (KFY)
Inventory turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,202,140 | 2,247,260 | 2,009,400 | 1,540,810 | 1,580,010 |
| Inventory | US$ in thousands | — | 49,219 | 41,763 | 30,724 | 26,851 |
| Inventory turnover | — | 45.66 | 48.11 | 50.15 | 58.84 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,202,140K ÷ $—K
= —
Inventory turnover measures how efficiently a company manages its inventory by showing how many times the company sells and replaces its inventory during a specific period. Looking at Korn Ferry's historical inventory turnover ratios, we observe a declining trend over the last five years, from 58.84 in 2020 to 45.66 in 2023.
A declining inventory turnover ratio could indicate that the company is holding onto excess inventory, which may lead to higher storage costs or potential obsolescence. It could also suggest that the company is experiencing slower sales relative to its inventory levels.
However, it's important to note that a lower inventory turnover ratio may not always be negative. It could be a strategic decision to hold onto inventory due to anticipated increased demand or supply chain constraints.
Further analysis and comparison with industry benchmarks would provide a clearer picture of Korn Ferry's inventory management efficiency and whether the decreasing trend in inventory turnover is a cause for concern or a part of the company's operational strategy.
Peer comparison
Apr 30, 2024