Toro Co (TTC)
Inventory turnover
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 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 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,950,891 | 4,059,561 | 4,168,560 | 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 | 2,831,455 | 2,495,122 | 2,145,121 | 1,868,334 |
| Inventory | US$ in thousands | 1,177,100 | 1,087,800 | 1,112,690 | 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 | 651,663 | 620,612 | 611,331 | 416,650 |
| Inventory turnover | 3.36 | 3.73 | 3.75 | 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 | 4.34 | 4.02 | 3.51 | 4.48 |
February 2, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,950,891K ÷ $1,177,100K
= 3.36
In analyzing the inventory turnover of Toro Co. over the past eight quarters, we observe that there has been a slight decrease in inventory turnover from Q1 2023 to Q1 2024. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times it sells and replaces its inventory within a given period.
Toro Co.'s inventory turnover ratio has ranged from a low of 2.45 in Q1 2024 to a high of 3.13 in Q2 2022. A higher inventory turnover ratio implies that the company is selling its inventory more frequently, which can be indicative of efficient inventory management. On the other hand, a lower inventory turnover ratio may suggest overstocking or slow-moving inventory.
The trend in Toro Co.'s inventory turnover indicates a general stability over the quarters, with minor fluctuations seen. It is essential for the company to strike a balance in managing its inventory levels to ensure smooth operations and optimize its working capital.
Further analysis in conjunction with other financial ratios and operational insights would provide a more comprehensive understanding of Toro Co.'s overall performance and efficiency in managing its inventory.