Simulations Plus Inc (SLP)

Inventory turnover

		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	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cost of revenue (ttm)	US$ in thousands	42,819	26,079	16,075	13,611	11,630	10,929	10,527	10,737	10,822	10,930	10,842	10,923	10,600	10,489	10,684	10,439	10,649	10,266	9,924	9,466
Inventory	US$ in thousands	2,197	—	0	37	804	—	397	992	1,391	0	449	584	1,012	492	1,250	560	970	392	457	87
Inventory turnover		19.49	—	—	367.86	14.47	—	26.52	10.82	7.78	—	24.15	18.70	10.47	21.32	8.55	18.64	10.98	26.19	21.72	108.80

August 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $42,819K ÷ $2,197K
= 19.49

The inventory turnover of Simulations Plus Inc has shown fluctuations over the past few years. The inventory turnover ratio reveals how efficiently the company manages its inventory by indicating how many times it sells and replaces its inventory during a specific period. A higher inventory turnover generally indicates that the company is effectively selling its products and not overstocking.

Looking at the data, it is evident that there have been significant variations in Simulations Plus Inc's inventory turnover. For example, the inventory turnover ratio was notably high at 367.86 in November 2023, indicating that the company sold and replaced its inventory rapidly during that period. Conversely, the inventory turnover was lower at 7.78 in November 2022, which implies that the company took longer to sell and replace its inventory during that time.

Overall, the trend in inventory turnover for Simulations Plus Inc fluctuates, suggesting varying efficiency in managing its inventory levels. It would be essential for the company to analyze the reasons behind these fluctuations and work towards maintaining a more consistent and efficient inventory turnover ratio in the future.