Toro Co (TTC)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,085,000 | 4,158,200 | 3,972,900 | 3,465,100 | 2,971,950 |
| Inventory | US$ in thousands | 1,038,900 | 1,087,800 | 1,051,100 | 738,170 | 652,433 |
| Inventory turnover | 3.93 | 3.82 | 3.78 | 4.69 | 4.56 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,085,000K ÷ $1,038,900K
= 3.93
The inventory turnover of Toro Co has shown some fluctuations over the past five years. In general, the company's inventory turnover ratio has ranged from approximately 3.78 to 4.69, with the highest turnover occurring in the fiscal year ending October 31, 2021.
A higher inventory turnover ratio indicates that Toro Co is efficiently managing its inventory by selling and replacing goods more quickly. Conversely, a lower ratio may suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory.
It is important to note that changes in the inventory turnover ratio can be influenced by various factors, including sales volume, supply chain disruptions, and shifts in consumer demand. Therefore, it is essential for Toro Co to carefully monitor its inventory turnover ratio and implement strategies to optimize inventory levels and improve operational efficiency.