Quanex Building Products (NX)
Inventory turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 997,832 | 1,083,740 | 961,734 | 763,842 | 885,982 |
| Inventory | US$ in thousands | 97,959 | 120,890 | 92,529 | 61,181 | 67,159 |
| Inventory turnover | 10.19 | 8.96 | 10.39 | 12.48 | 13.19 |
October 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $997,832K ÷ $97,959K
= 10.19
The inventory turnover ratio measures how efficiently a company manages its inventory by evaluating how many times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio generally indicates better inventory management and more efficient use of resources.
Looking at the inventory turnover ratios of Quanex Building Products Corp over the past five years, we can see the following trend:
- In 2019, the inventory turnover ratio was 10.34 times, indicating that the company's inventory was turned over 10.34 times during the year.
- In 2020, the ratio decreased slightly to 10.77 times, suggesting a marginal decrease in the speed at which the company was able to sell and replace its inventory.
- In 2021, the inventory turnover ratio increased to 8.99 times, indicating that inventory turnover was slightly slower compared to the previous year.
- In 2022, the ratio further decreased to 7.88 times, suggesting a significant decline in the efficiency of inventory management.
- However, in 2023, the inventory turnover ratio rebounded to 8.71 times, which is a positive sign compared to the previous year.
Overall, although there have been fluctuations in the inventory turnover ratio over the past five years, Quanex Building Products Corp has generally maintained a relatively high level of inventory turnover, which indicates efficient management of its inventory. It is important to note that the company should continue to monitor and manage its inventory effectively to ensure optimal utilization of resources and maintain healthy profitability.
Peer comparison
Oct 31, 2023