Leslies Inc (LESL)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,306,080 | 1,383,170 | 1,354,140 | 1,160,380 |
| Inventory | US$ in thousands | 234,283 | 311,837 | 361,686 | 198,789 |
| Inventory turnover | 5.57 | 4.44 | 3.74 | 5.84 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,306,080K ÷ $234,283K
= 5.57
Leslies Inc's inventory turnover has fluctuated over the past four years. In 2024, the inventory turnover ratio improved to 5.57 times, indicating that the company's inventory was sold and replaced approximately 5.57 times during the year. This suggests that Leslies Inc has become more efficient in managing its inventory compared to the previous year.
Although in 2023 the inventory turnover ratio was slightly lower at 4.44 times, it still indicates a healthy rate of inventory turnover. In 2022, the ratio dropped to 3.74 times, which may suggest slower sales in relation to the amount of inventory held by the company.
However, in 2021, Leslies Inc saw a significant improvement in inventory turnover with a ratio of 5.84 times, suggesting a more efficient management of inventory that year compared to 2022.
Overall, fluctuations in inventory turnover can indicate changes in sales patterns, inventory management practices, or market demand. Leslies Inc should continue monitoring its inventory turnover to ensure optimal use of resources and efficiency in its operations.
Peer comparison
Sep 30, 2024