Simulations Plus Inc (SLP)

Inventory turnover

		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	May 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	9,023	8,852
Inventory	US$ in thousands	—	37	804	—	397	992	1,391	322	449	584	1,012	492	1,250	560	970	392	457	87	765	—
Inventory turnover		—	367.86	14.47	—	26.52	10.82	7.78	33.94	24.15	18.70	10.47	21.32	8.55	18.64	10.98	26.19	21.72	108.80	11.79	—

February 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,075K ÷ $—K
= —

The inventory turnover ratio for Simulations Plus Inc has shown fluctuations over the periods listed. The inventory turnover was significantly high at 367.86 in November 2023, indicating that the company sold and replaced its inventory multiple times during that month. This could suggest efficient inventory management and a quick turnover of goods.

However, the inventory turnover was lower in other periods, such as in August 2023 at 14.47 and in February 2023 at 26.52. These lower turnover ratios may indicate slower sales relative to the amount of inventory held, which could potentially lead to excess inventory levels or obsolescence.

Overall, it is important for Simulations Plus Inc to strike a balance between maintaining optimal inventory levels to meet customer demand and avoiding unnecessary carrying costs associated with excess inventory. Evaluating trends in inventory turnover can provide insights into the company's inventory management efficiency and operational performance.