Synnex Corporation (SNX)

Inventory turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cost of revenue	US$ in thousands	53,598,600	58,443,600	29,724,600	18,783,300	17,912,700
Inventory	US$ in thousands	7,146,270	9,066,620	6,642,920	2,684,080	2,547,220
Inventory turnover		7.50	6.45	4.47	7.00	7.03

November 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $53,598,600K ÷ $7,146,270K
= 7.50

The inventory turnover ratio for TD Synnex Corp has fluctuated over the past five years. In 2023, the inventory turnover ratio improved significantly to 7.50 compared to the previous year, indicating that the company's inventory was sold and replaced 7.50 times during the year. This may imply efficient inventory management and a quicker turnover of goods. However, caution should be exercised, as a very high inventory turnover ratio may also suggest possible inventory shortages. In 2022 and 2021, the inventory turnover ratios were 6.45 and 4.47, respectively, indicating a decrease in inventory turnover efficiency. This may be a reflection of challenges in managing inventory levels or a slowdown in sales.

2019 and 2020 saw relatively high turnover ratios of 8.19 and 8.13, respectively, which suggests efficient management and movement of inventory. The sudden decrease in 2021 may warrant further investigation into changes in the company's operations or market conditions that impacted the inventory turnover. Overall, a higher inventory turnover ratio is generally preferable, as it signifies effective management of inventory levels and a quicker conversion of inventory to sales. However, it's important to consider industry benchmarks and other factors affecting the company's operations before drawing definitive conclusions.