RPM International Inc (RPM)
Inventory turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,322,162 | 4,299,542 | 4,306,288 | 4,269,568 | 4,320,688 | 4,384,168 | 4,446,492 | 4,503,762 | 4,508,372 | 4,512,702 | 4,469,853 | 4,425,453 | 4,274,673 | 4,080,203 | 3,942,364 | 3,785,187 | 3,701,132 | 3,555,218 | 3,496,993 | 3,469,144 |
| Inventory | US$ in thousands | 1,036,480 | 1,044,780 | 995,262 | 1,003,460 | 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 |
| Inventory turnover | 4.17 | 4.12 | 4.33 | 4.25 | 4.52 | 4.06 | 4.03 | 4.03 | 3.97 | 3.36 | 3.22 | 3.30 | 3.53 | 3.42 | 3.79 | 3.80 | 3.95 | 3.89 | 4.22 | 4.43 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,322,162K ÷ $1,036,480K
= 4.17
The inventory turnover ratio for RPM International Inc. exhibits a trend characterized by fluctuations over the period from August 2020 to May 2025. Initially, the ratio declined from 4.43 in August 2020 to a low of 3.22 in November 2022, indicating a slowdown in inventory sales relative to stock levels. This downward trend suggests that inventory held for longer durations during this period, potentially impacting liquidity and operational efficiency.
From late 2022 onwards, the ratio demonstrates a gradual recovery, reaching a peak of 4.52 in May 2024. This increase signifies an improvement in inventory management and sales efficiency, with stocks turning over more quickly. The ratio remains relatively stable thereafter, maintaining levels above 4.0 through to November 2024 before experiencing minor fluctuations. Notably, by August 2024, the inventory turnover ratio climbs to 4.25, indicating that inventory is being converted into sales more rapidly compared to the earlier years.
Overall, the trend implies periods of both operational challenges and subsequent improvement in inventory management. The subsequent rise in turnover ratios suggests enhanced sales velocity and more efficient inventory utilization, which are generally viewed positively from a liquidity and operational perspective.
Peer comparison
May 31, 2025
May 31, 2025