Rockwell Automation Inc (ROK)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,333,400 | 7,644,000 | 6,544,300 | 5,847,300 | 5,264,600 |
| Inventory | US$ in thousands | 1,293,100 | 1,404,900 | 1,054,200 | 798,100 | 584,000 |
| Inventory turnover | 5.67 | 5.44 | 6.21 | 7.33 | 9.01 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,333,400K ÷ $1,293,100K
= 5.67
Rockwell Automation Inc's inventory turnover has shown a declining trend over the past five years. In Sep 30, 2020, the inventory turnover was at its highest at 9.01, indicating that the company's inventory was turned over approximately 9 times during that period. However, there has been a consistent decrease in inventory turnover since then, reaching 5.67 in Sep 30, 2024.
A decreasing inventory turnover could suggest that the company is holding onto its inventory for a longer period before selling it, which may tie up capital and increase carrying costs. It could also indicate potential issues with inventory management, such as overstocking or obsolete inventory.
It is important for Rockwell Automation Inc to analyze the reasons behind the declining trend in inventory turnover and take appropriate measures to optimize their inventory management processes to ensure efficient utilization of resources and improved liquidity.
Peer comparison
Sep 30, 2024