News Corp B (NWS)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,365,000 | 4,199,000 | 4,389,000 | 4,102,000 | 5,469,000 |
| Inventory | US$ in thousands | 296,000 | 311,000 | 311,000 | 253,000 | 348,000 |
| Inventory turnover | 14.75 | 13.50 | 14.11 | 16.21 | 15.72 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,365,000K ÷ $296,000K
= 14.75
Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory. News Corp B's inventory turnover has shown a general increasing trend over the past five years, with values of 14.75, 13.50, 14.11, 16.21, and 15.72 for the years ending June 30, 2024, 2023, 2022, 2021, and 2020 respectively.
A higher inventory turnover ratio implies that News Corp B sells its inventory more frequently during a given period, indicating efficient inventory management. This trend suggests that the company has been effectively managing its inventory levels by selling products quickly and minimizing excess stock.
The increase in the inventory turnover ratio from 13.50 in 2023 to 14.75 in 2024 reflects an improvement in News Corp B's inventory management efficiency over the past year. However, caution should be exercised in interpreting this ratio in isolation, as industry benchmarks and specific company circumstances should also be considered for a comprehensive analysis.
Peer comparison
Jun 30, 2024