Matthews International Corporation (MATW)
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 | 1,266,030 | 1,266,024 | 1,303,631 | 1,310,547 | 1,303,224 | 1,285,740 | 1,252,991 | 1,243,493 | 1,240,125 | 1,229,029 | 1,219,297 | 1,174,981 | 1,129,198 | 1,091,239 | 1,038,586 | 1,012,479 | 1,000,537 | 987,531 | 991,178 | 996,261 |
| Inventory | US$ in thousands | 237,888 | 248,644 | 253,301 | 257,836 | 260,409 | 268,599 | 254,557 | 245,565 | 225,440 | 211,161 | 201,566 | 192,744 | 189,088 | 194,700 | 186,522 | 178,160 | 175,100 | 182,351 | 186,919 | 185,608 |
| Inventory turnover | 5.32 | 5.09 | 5.15 | 5.08 | 5.00 | 4.79 | 4.92 | 5.06 | 5.50 | 5.82 | 6.05 | 6.10 | 5.97 | 5.60 | 5.57 | 5.68 | 5.71 | 5.42 | 5.30 | 5.37 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,266,030K ÷ $237,888K
= 5.32
The inventory turnover ratio for Matthews International Corporation has been relatively stable over the past few years, ranging between 4.79 and 6.10. This ratio indicates how efficiently the company is managing its inventory levels. A higher inventory turnover ratio suggests that the company is selling its inventory more quickly, which is generally a positive sign as it reduces the risk of obsolete inventory and carrying costs.
Matthews International Corporation's inventory turnover has averaged around 5.50 over the most recent period. This signifies that, on average, the company's inventory is turning over approximately 5.50 times a year. The slight variations in the ratio from quarter to quarter indicate potential fluctuations in sales or inventory management practices. It is important for the company to closely monitor and analyze these fluctuations to ensure optimal inventory management and operational efficiency.