Liquidity Services Inc (LQDT)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	223,717	194,785	176,948	162,585	176,831
Inventory	US$ in thousands	11,116	11,679	12,468	5,607	5,843
Inventory turnover		20.13	16.68	14.19	29.00	30.26

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $223,717K ÷ $11,116K
= 20.13

The inventory turnover ratio for Liquidity Services Inc has been fluctuating over the past five years. In 2023, the company's inventory turnover ratio stood at 12.80, representing a significant increase from the previous year. This indicates that the company's inventory was sold and replaced 12.80 times during the year. This could be a positive indication of efficient inventory management and sales performance. However, it's crucial to note that inventory turnover ratios can be industry-specific, and it's essential to compare the ratio with industry benchmarks for a more comprehensive analysis.