Leslies Inc (LESL)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,291,792 | 1,314,094 | 1,337,435 | 1,356,674 | 1,368,506 | 1,366,513 | 1,372,524 | 1,365,354 | 1,341,296 | 1,290,048 | 1,218,662 | 1,178,133 | 1,148,974 | |||
| Inventory | US$ in thousands | 234,283 | 302,209 | 379,090 | 334,031 | 311,837 | 436,557 | 492,328 | 429,517 | 361,686 | 361,391 | 345,046 | 244,632 | 198,789 | 224,526 | 277,860 | 174,535 |
| Inventory turnover | 5.51 | 4.35 | 3.53 | 4.06 | 4.39 | 3.13 | 2.79 | 3.18 | 3.71 | 3.57 | 3.53 | 4.82 | 5.78 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,291,792K ÷ $234,283K
= 5.51
Leslies Inc's inventory turnover ratio has fluctuated over the past several quarters, indicating varying levels of efficiency in managing its inventory. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.
For the most recent data available, as of September 30, 2024, Leslies Inc's inventory turnover ratio stood at 5.51, which means the company sold and replaced its inventory approximately 5.51 times during that period. This current ratio represents an improvement compared to the previous quarter's 4.35 and is significantly higher than the 3.71 reported three quarters ago.
The trend observed in the inventory turnover ratio suggests an overall improvement in inventory management efficiency, with a general upward trajectory over the analyzed period. This upward trend indicates that Leslies Inc has been managing its inventory more effectively, potentially reducing carrying costs and minimizing excess inventory levels.
While a higher inventory turnover ratio is generally favorable as it signifies efficient inventory management, it's essential to consider industry norms and business specifics for a meaningful benchmark comparison. Leslies Inc's increasing trend in inventory turnover suggests that the company is managing its inventory better and turning over its goods more frequently, which can lead to improved cash flow and profitability in the long run.
Peer comparison
Sep 30, 2024
Sep 30, 2024