Toro Co (TTC)
Inventory turnover
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,085,000 | 4,007,401 | 4,099,591 | 4,058,691 | 4,158,191 | 4,291,260 | 4,188,070 | 4,146,870 | 3,972,894 | 3,835,019 | 3,689,716 | 3,576,207 | 3,465,104 | 3,324,685 | 3,193,408 | 3,027,320 | 2,971,953 | 2,916,150 | 2,958,299 | 2,977,807 |
| Inventory | US$ in thousands | 1,038,900 | 1,082,000 | 1,105,000 | 1,177,100 | 1,087,800 | 1,112,700 | 1,127,500 | 1,131,400 | 1,051,100 | 939,274 | 891,676 | 832,072 | 738,170 | 665,648 | 628,811 | 675,307 | 652,433 | 656,208 | 714,167 | 738,960 |
| Inventory turnover | 3.93 | 3.70 | 3.71 | 3.45 | 3.82 | 3.86 | 3.71 | 3.67 | 3.78 | 4.08 | 4.14 | 4.30 | 4.69 | 4.99 | 5.08 | 4.48 | 4.56 | 4.44 | 4.14 | 4.03 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,085,000K ÷ $1,038,900K
= 3.93
Toro Co's inventory turnover has fluctuated over the past several years, with a general trend of remaining above 3.0. This ratio measures the efficiency of the company in managing its inventory levels by indicating how many times the inventory is sold and replaced during a specific period.
In the most recent year, ending in October 2024, the inventory turnover was 3.93, indicating that Toro Co's inventory was turned over approximately 3.93 times during that year. This was slightly higher than the turnover in the previous quarter, showing a slight improvement in inventory management efficiency.
Looking back over the historical data, there are fluctuations in the inventory turnover ratio, with some quarters showing higher turnover rates, such as in January 2022 and April 2021, where the ratios were 4.69 and 5.08, respectively. These higher turnover ratios suggest that Toro Co was more efficient in managing its inventory during those periods.
Overall, Toro Co's inventory turnover has generally been within a moderate range, indicating a balance between maintaining sufficient inventory levels to meet demand and minimizing excess inventory that could tie up capital. It is important for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and maximize profitability.