RPM International Inc (RPM)
Inventory turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,624,430 | 6,674,070 | 6,222,310 | 5,530,120 | 5,152,730 |
| Inventory | US$ in thousands | 956,465 | 1,135,500 | 1,212,620 | 938,095 | 810,448 |
| Inventory turnover | 6.93 | 5.88 | 5.13 | 5.90 | 6.36 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,624,430K ÷ $956,465K
= 6.93
RPM International Inc's inventory turnover ratio has fluctuated over the past five years, ranging from 5.13 to 6.93 times. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
In 2024, the inventory turnover ratio improved to 6.93 times, reflecting a more efficient management of inventory compared to the previous year's ratio of 5.88. This suggests that RPM International Inc was able to sell and replace its inventory nearly seven times within the year.
The trend shows that in 2022 and 2023, the inventory turnover ratio was lower, indicating slower sales relative to inventory levels. However, the ratio rebounded in 2024, surpassing the 2021 level, and showing an improvement in inventory management efficiency.
Overall, the fluctuation in RPM International Inc's inventory turnover ratio suggests varying levels of inventory management effectiveness over the past five years, with 2024 demonstrating a positive uptick in inventory turnover efficiency.
Peer comparison
May 31, 2024