ScanSource Inc (SCSC)
Inventory turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,170,554 | 3,366,133 | 3,482,276 | 3,596,091 | 3,652,790 | 3,667,782 | 3,629,591 | 3,490,641 | 3,408,735 | 3,303,351 | 3,200,856 | 3,161,940 | 3,090,351 | 2,565,738 | 2,721,060 | 2,895,328 | 3,126,203 | 3,759,078 | 3,763,335 | 3,810,325 |
| Inventory | US$ in thousands | 512,634 | 529,163 | 575,137 | 656,170 | 757,574 | 752,763 | 761,936 | 675,798 | 614,814 | 591,396 | 562,397 | 493,541 | 470,081 | 459,652 | 421,003 | 423,088 | 454,885 | 666,458 | 742,979 | 715,224 |
| Inventory turnover | 6.18 | 6.36 | 6.05 | 5.48 | 4.82 | 4.87 | 4.76 | 5.17 | 5.54 | 5.59 | 5.69 | 6.41 | 6.57 | 5.58 | 6.46 | 6.84 | 6.87 | 5.64 | 5.07 | 5.33 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,170,554K ÷ $512,634K
= 6.18
Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory within a specific time period.
Based on the data provided for ScanSource Inc over the past several quarters, the inventory turnover ratio has exhibited some fluctuations. The inventory turnover ranged from a low of 4.76 in December 2022 to a high of 6.87 in June 2020.
Overall, the company has generally maintained a healthy inventory turnover ratio, with an average turnover rate of approximately 5.88 times per year during the period under review.
A higher inventory turnover ratio indicates that a company is selling its inventory more frequently, which is generally seen as a positive sign of efficient inventory management and liquidity. Conversely, a lower ratio may suggest that a company is overstocked or facing difficulties in selling its inventory.
ScanSource Inc's inventory turnover ratio has shown a generally positive trend over the analyzed period, indicating effective inventory management practices. However, it is essential to consider industry norms and company-specific factors when interpreting inventory turnover ratios for a comprehensive analysis of a company's performance.
Peer comparison
Jun 30, 2024
Jun 30, 2024