Liveramp Holdings Inc (RAMP)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	496,795	521,718	454,523	443,748	470,420
Inventory	US$ in thousands	2,604	0	0	8,900	14,815
Inventory turnover		190.78	—	—	49.86	31.75

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $496,795K ÷ $2,604K
= 190.78

Based on the provided data, Liveramp Holdings Inc's inventory turnover has shown a significant improvement over the years. The inventory turnover ratio for the most recent fiscal year ended March 31, 2024, stood at an impressive 190.78, indicating that the company's inventory turnover efficiency has substantially increased. This signifies that Liveramp Holdings Inc is selling its inventory over 190 times in a year, which suggests effective inventory management and swift stock turnover.

It is noteworthy that there was no specific data available for the inventory turnover ratio in the fiscal year ended March 31, 2023. However, comparing the available data with the previous years, there is a clear trend of improvement. In the fiscal year ended March 31, 2022, the inventory turnover ratio was not disclosed, but it increased significantly from 49.86 in the fiscal year ended March 31, 2021, to 190.78 in 2024. This trend suggests a stronger control over inventory levels, which is essential for managing working capital efficiently and reducing carrying costs associated with excess inventory.

Moreover, the inventory turnover ratio of 31.75 in the fiscal year ended March 31, 2020, further indicates that Liveramp Holdings Inc has been making strides in streamlining its inventory management processes and optimizing its supply chain operations over the years. This improvement is a positive sign for the company, as a higher inventory turnover ratio generally reflects a healthier and more efficient business operation.

In conclusion, Liveramp Holdings Inc's increasing inventory turnover ratio over the years reflects improved efficiency in managing its inventory levels and signals a positive trend in the company's operational performance and financial health.