ScanSource Inc (SCSC)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,170,550 | 3,652,790 | 3,408,740 | 3,090,290 | 3,108,100 |
| Inventory | US$ in thousands | 512,634 | 757,574 | 614,814 | 470,081 | 454,885 |
| Inventory turnover | 6.18 | 4.82 | 5.54 | 6.57 | 6.83 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,170,550K ÷ $512,634K
= 6.18
Inventory turnover is a key efficiency ratio that provides insight into how well a company manages its inventory levels. In the case of ScanSource Inc, we observe fluctuations in inventory turnover over the past five years. The inventory turnover ratio has ranged from a low of 4.82 in 2023 to a high of 6.83 in 2020.
The increasing trend in inventory turnover from 2020 to 2021 suggests that ScanSource Inc was turning over its inventory more quickly, indicating efficient inventory management during this period. However, there was a slight decrease in inventory turnover in 2022, which indicates that the company took longer to sell its inventory compared to the previous year.
In 2023, there was a notable drop in inventory turnover, which may signal potential issues with inventory management such as overstocking or slowing sales. The subsequent increase in inventory turnover in 2024 to 6.18 indicates that the company improved its efficiency in managing its inventory during this period.
Overall, while there have been fluctuations in inventory turnover, ScanSource Inc has generally maintained a respectable level of inventory turnover, indicating a reasonable balance between maintaining optimal inventory levels and ensuring efficient use of resources.
Peer comparison
Jun 30, 2024