RPM International Inc (RPM)
Inventory turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,322,170 | 4,320,690 | 4,508,370 | 4,274,680 | 3,701,130 |
| Inventory | US$ in thousands | 1,036,480 | 956,465 | 1,135,500 | 1,212,620 | 938,095 |
| Inventory turnover | 4.17 | 4.52 | 3.97 | 3.53 | 3.95 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,322,170K ÷ $1,036,480K
= 4.17
The inventory turnover ratio of RPM International Inc. has demonstrated fluctuating but generally improving trends over the observed period from May 31, 2021, to May 31, 2025. Specifically, as of May 31, 2021, the ratio was 3.95, indicating that the company sold and replenished its inventory approximately 3.95 times during that fiscal year. The following year, this ratio decreased to 3.53, reflecting a slowdown in inventory turnover or a possible accumulation of inventory relative to sales.
However, the ratio experienced a notable recovery by May 31, 2023, reaching 3.97, slightly exceeding the 2021 level, which suggests an improvement in inventory efficiency. The upward trend continued into May 31, 2024, when the ratio increased further to 4.52, indicating that the company was selling and replacing its inventory more frequently—an optimal sign of efficient inventory management and a potential indicator of strong sales performance.
In the subsequent year, May 31, 2025, the ratio declined slightly to 4.17. While this represents a decrease from the peak in 2024, it still remains above the 2021 and 2022 levels. This overall pattern suggests that RPM International Inc. has improved its inventory management efficiency over the assessed period, with the peak in 2024 suggesting optimal performance. Nonetheless, the slight decrease in the most recent year warrants observation to determine if it reflects seasonal variations, strategic inventory holding adjustments, or potential shifts in sales dynamics.
Peer comparison
May 31, 2025