Patterson Companies Inc (PDCO)
Inventory turnover
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,188,030 | 5,098,530 | 5,210,320 | 4,708,940 | 4,292,600 |
| Inventory | US$ in thousands | 782,898 | 795,072 | 785,604 | 736,778 | 812,194 |
| Inventory turnover | 6.63 | 6.41 | 6.63 | 6.39 | 5.29 |
April 27, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,188,030K ÷ $782,898K
= 6.63
Patterson Companies Inc's inventory turnover has shown a relatively stable trend over the past five years, ranging between 5.29 and 6.63. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales. The consistent inventory turnover ratio suggests efficient inventory management practices, which could lead to lower carrying costs and potential risks associated with excess inventory.
The increase in inventory turnover from 5.29 in 2020 to 6.63 in 2024 reflects improvement in the company's ability to sell and replace inventory within a shorter time period. A higher inventory turnover ratio signifies that Patterson Companies Inc is selling its products quickly and effectively.
Overall, the steady and relatively high inventory turnover ratios suggest that Patterson Companies Inc is efficiently utilizing its inventory resources to generate sales, which may contribute to improved profitability and liquidity.
Peer comparison
Apr 27, 2024