Post Holdings Inc (POST)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,617,800 | 5,109,300 | 4,383,700 | 3,552,600 | 3,261,600 |
| Inventory | US$ in thousands | 754,200 | 789,900 | 549,100 | 476,600 | 599,400 |
| Inventory turnover | 7.45 | 6.47 | 7.98 | 7.45 | 5.44 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,617,800K ÷ $754,200K
= 7.45
Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory. Post Holdings Inc's inventory turnover ratio has been steady over the past five years, ranging from 5.44 to 7.98. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
In the most recent fiscal year, as of September 30, 2024, Post Holdings Inc's inventory turnover ratio was 7.45, showing a good level of efficiency in managing its inventory. This suggests that the company is effectively controlling its inventory levels and converting them into sales multiple times throughout the year.
When compared to the previous years, the inventory turnover ratio for 2024 is consistent with the highest levels seen in the last four years. This could indicate improved inventory management practices or potentially higher sales volume relative to the inventory levels held by the company.
Overall, a consistently high inventory turnover ratio suggests that Post Holdings Inc is effectively managing its inventory to support its sales activities. It indicates operational efficiency and effective inventory control, which can contribute to overall profitability and financial health.
Peer comparison
Sep 30, 2024