RBC Bearings Incorporated (RBC)
Inventory turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 889,800 | 882,367 | 841,232 | 622,124 | 403,101 | 396,458 | 395,301 | 493,545 | 585,800 | 462,324 | 378,989 | 370,292 | 374,900 | 420,756 | 469,983 | 524,122 | 571,449 | 568,650 | 564,018 | 557,131 |
| Inventory | US$ in thousands | 622,800 | 629,600 | 615,000 | 603,300 | 587,200 | 577,627 | 557,801 | 542,050 | 516,100 | 510,175 | 370,745 | 369,854 | 364,147 | 372,104 | 371,546 | 371,009 | 367,494 | 362,138 | 353,995 | 342,921 |
| Inventory turnover | 1.43 | 1.40 | 1.37 | 1.03 | 0.69 | 0.69 | 0.71 | 0.91 | 1.14 | 0.91 | 1.02 | 1.00 | 1.03 | 1.13 | 1.26 | 1.41 | 1.55 | 1.57 | 1.59 | 1.62 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $889,800K ÷ $622,800K
= 1.43
Inventory turnover is a crucial financial ratio that indicates how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory balance. A higher inventory turnover ratio typically suggests that a company is selling its inventory quickly and efficiently.
Analyzing the inventory turnover for RBC Bearings Incorporated over the past few quarters, we can see fluctuations in the ratio. From March 2020 to March 2024, the inventory turnover has ranged from 0.69 to 1.43. In recent quarters, there has been an upward trend in the ratio, indicating an improvement in inventory management efficiency.
A lower inventory turnover ratio, such as seen in the first two quarters of 2020, might suggest sluggish sales or excessive inventory levels, potentially leading to increased carrying costs and risk of obsolescence. Conversely, a higher ratio, as observed in the latest quarter, may reflect stronger sales performance and more effective inventory control.
Overall, an increasing trend in inventory turnover for RBC Bearings Incorporated is a positive sign, indicating improved inventory management and potentially higher profitability. However, it is essential to compare this ratio with industry benchmarks and company historical data for a more comprehensive assessment of the company's performance in managing its inventory effectively.
Peer comparison
Mar 31, 2024
Mar 31, 2024