Quanex Building Products (NX)
Inventory turnover
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,188,223 | 957,373 | 968,997 | 975,406 | 997,832 | 877,659 | 908,040 | 951,319 | 953,004 | 939,749 | 908,169 | 866,978 | 831,541 | 793,887 | 736,448 | 677,720 | 658,750 | 652,714 | 671,644 | 693,290 |
| Inventory | US$ in thousands | 275,550 | 99,127 | 101,446 | 107,478 | 97,959 | 105,368 | 114,015 | 127,735 | 120,890 | 138,237 | 130,383 | 117,384 | 92,529 | 93,493 | 80,365 | 76,076 | 61,181 | 63,939 | 75,072 | 78,117 |
| Inventory turnover | 4.31 | 9.66 | 9.55 | 9.08 | 10.19 | 8.33 | 7.96 | 7.45 | 7.88 | 6.80 | 6.97 | 7.39 | 8.99 | 8.49 | 9.16 | 8.91 | 10.77 | 10.21 | 8.95 | 8.88 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,188,223K ÷ $275,550K
= 4.31
The inventory turnover for Quanex Building Products has shown fluctuations over the past several quarters. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period of time. It indicates the efficiency of inventory management and how quickly inventory is being converted into sales.
From the data provided, we can see that the inventory turnover ratio ranged from 4.31 to 10.77 over the past 2 years. A higher inventory turnover ratio generally indicates more efficient inventory management, as it suggests that inventory is being sold and restocked at a faster pace.
In analyzing the trend, we observe that the inventory turnover ratio has generally been increasing over the past quarters, reaching its peak at 10.77 in the most recent quarter. This may indicate improved efficiency in managing inventory levels or increased sales volume relative to the amount of inventory held.
Overall, a high and increasing inventory turnover ratio is generally positive, as it signifies efficient inventory management. However, it is essential to consider industry norms and specific business circumstances when evaluating the significance of the inventory turnover ratio for Quanex Building Products.
Peer comparison
Oct 31, 2024
Oct 31, 2024