REX American Resources Corporation (REX)

Inventory turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cost of revenue	US$ in thousands	551,014	735,166	806,398	677,242	358,985
Inventory	US$ in thousands	31,676	26,984	48,744	42,225	37,426
Inventory turnover		17.40	27.24	16.54	16.04	9.59

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $551,014K ÷ $31,676K
= 17.40

Based on the data provided, the inventory turnover for REX American Resources Corporation has shown a positive trend over the past five years. The inventory turnover ratio has increased steadily from 9.59 in January 31, 2021, to 17.40 in January 31, 2025. This indicates that the company is managing its inventory more efficiently, selling its inventory more frequently within the given time period.

A higher inventory turnover ratio reflects that the company is able to quickly convert its inventory into sales, reducing the risk of obsolete or excess inventory. In REX American Resources Corporation's case, the trend suggests an improvement in inventory management practices, which is a positive sign for the company's operational efficiency and potentially its profitability.

The significant increase in the inventory turnover ratio from 2023 to 2024, reaching 27.24, indicates that the company made significant improvements in inventory management during that period. However, it is essential for the company to sustain this efficiency in managing its inventory to support its overall business operations and financial performance in the future.