RBC Bearings Incorporated (RBC)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 910,200 | 889,800 | 864,543 | 585,869 | 374,878 |
| Inventory | US$ in thousands | 654,500 | 622,800 | 587,200 | 516,140 | 364,147 |
| Inventory turnover | 1.39 | 1.43 | 1.47 | 1.14 | 1.03 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $910,200K ÷ $654,500K
= 1.39
The inventory turnover ratio for RBC Bearings Incorporated has shown a gradual improvement over the five-year period from March 31, 2021, to March 31, 2025. The ratio increased from 1.03 in 2021 to 1.39 in 2025, indicating that the company has been more effective in managing its inventory levels and converting them into sales.
This improvement suggests that RBC Bearings has been able to sell its inventory more efficiently over time, which can be a positive sign of effective inventory management and potentially better working capital utilization. A higher inventory turnover ratio typically indicates that the company is selling its products quickly and not holding onto excess inventory, which can help improve cash flow and profitability.
Overall, the increasing trend in RBC Bearings' inventory turnover ratio reflects positive operational efficiency in managing its inventory levels and converting them into sales, which can be beneficial for the company's financial performance and overall profitability.
Peer comparison
Mar 31, 2025