REX American Resources Corporation (REX)

Inventory turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cost of revenue (ttm)	US$ in thousands	735,166	763,230	792,445	825,045	804,813	792,784	759,694	714,993	677,242	623,178	550,552	409,686	357,701	352,853	335,994	397,200	405,549	402,348	429,922	447,416
Inventory	US$ in thousands	26,984	37,515	45,960	41,299	48,744	42,045	49,928	56,388	42,225	29,753	41,759	26,687	37,426	21,616	30,383	27,268	35,634	31,038	22,071	20,150
Inventory turnover		27.24	20.34	17.24	19.98	16.51	18.86	15.22	12.68	16.04	20.95	13.18	15.35	9.56	16.32	11.06	14.57	11.38	12.96	19.48	22.20

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $735,166K ÷ $26,984K
= 27.24

The inventory turnover for REX American Resources Corporation has shown fluctuations over the past few periods. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company's inventory was sold and replaced during the period.

Based on the data provided, the inventory turnover ratio ranged from a low of 9.56 to a high of 27.24 over the periods reported. A higher inventory turnover ratio is generally preferable as it suggests that the company is able to sell its inventory quickly, which can indicate strong sales performance and effective inventory management.

The trend in REX American Resources Corporation's inventory turnover appears to have varied, with some periods showing higher turnover ratios and others showing lower ratios. For example, in some periods like Jan 31, 2024, and Oct 31, 2023, the inventory turnover ratio was relatively high, indicating efficient inventory management, while in other periods like Jan 31, 2021, and Jul 31, 2020, the ratio was lower, suggesting potential inventory management challenges.

It is essential for the company to closely monitor and analyze its inventory turnover ratio to ensure optimal inventory management practices. By identifying trends and understanding the reasons behind fluctuations in the ratio, the company can make informed decisions to improve efficiency, optimize inventory levels, and enhance overall financial performance.