RPM International Inc (RPM)
Inventory turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,624,440 | 6,662,500 | 6,704,620 | 6,730,040 | 6,693,980 | 6,634,320 | 6,535,260 | 6,439,670 | 6,222,190 | 5,994,610 | 5,827,380 | 5,633,850 | 5,530,120 | 5,299,090 | 5,224,760 | 5,200,730 | 5,152,730 | 5,252,030 | 5,237,630 | 5,219,950 |
| Inventory | US$ in thousands | 956,465 | 1,080,700 | 1,102,820 | 1,117,440 | 1,135,500 | 1,341,300 | 1,389,590 | 1,339,950 | 1,212,620 | 1,191,790 | 1,040,920 | 997,255 | 938,095 | 913,302 | 829,617 | 783,472 | 810,448 | 914,197 | 883,722 | 860,518 |
| Inventory turnover | 6.93 | 6.16 | 6.08 | 6.02 | 5.90 | 4.95 | 4.70 | 4.81 | 5.13 | 5.03 | 5.60 | 5.65 | 5.90 | 5.80 | 6.30 | 6.64 | 6.36 | 5.74 | 5.93 | 6.07 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,624,440K ÷ $956,465K
= 6.93
RPM International Inc's inventory turnover has ranged between 4.70 and 6.93 over the past 20 quarters. The inventory turnover indicates how efficiently the company is managing its inventory. A higher turnover ratio implies that the company is selling its products quickly and efficiently, while a lower ratio may suggest slower sales or excess inventory.
On average, RPM International Inc's inventory turnover has been around 5.80 over the 20 quarters. This suggests that, on average, the company sells and replaces its inventory approximately 5.80 times a year. The trend in inventory turnover shows some fluctuations but generally seems to be relatively stable over the period.
It's crucial to monitor inventory turnover regularly to ensure that the company is effectively managing its inventory levels. Consistently high turnover ratios may indicate strong demand and efficient inventory management, while a declining trend could signal potential issues such as overstocking or slowing sales. Further analysis and comparison with industry peers would provide more insights into RPM International Inc's inventory management performance.
Peer comparison
May 31, 2024
May 31, 2024