Liquidity Services Inc (LQDT)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	269,017	244,260	233,311	225,761	223,818	219,797	210,294	198,965	194,854	190,037	188,995	183,355	175,496	167,339	157,908	159,674	162,485	168,906	176,915	150,578
Inventory	US$ in thousands	17,099	13,275	15,398	14,465	11,116	12,541	15,290	16,369	11,679	14,355	13,079	13,225	12,468	13,799	13,124	9,931	5,607	7,415	8,491	5,808
Inventory turnover		15.73	18.40	15.15	15.61	20.13	17.53	13.75	12.15	16.68	13.24	14.45	13.86	14.08	12.13	12.03	16.08	28.98	22.78	20.84	25.93

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $269,017K ÷ $17,099K
= 15.73

The inventory turnover ratio for Liquidity Services Inc has shown fluctuations over the past several quarters. The ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced during a specific period.

From the data provided, we observe that the inventory turnover ratio has ranged from a low of 12.03 to a high of 28.98 over the past eight quarters. The highest ratio of 28.98 was recorded in September 2020, indicating that the company was able to turn over its inventory almost 29 times during that period.

It is important to note that a higher inventory turnover ratio generally signifies better inventory management and potentially indicates strong sales or efficient production processes. Conversely, lower turnover ratios may suggest overstocking, slow-moving inventory, or challenges in sales.

The trend in Liquidity Services Inc's inventory turnover ratio shows variability, with some quarters exhibiting higher turnover rates than others. It would be beneficial for the company to closely monitor and analyze the factors influencing inventory turnover to optimize inventory levels, improve operational efficiency, and enhance overall financial performance.