Vista Outdoor Inc (VSTO)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,700,570 | 2,598,350 | 2,395,910 | 1,949,870 | 1,893,880 |
| Inventory | US$ in thousands | 609,999 | 709,897 | 642,976 | 454,504 | 331,293 |
| Inventory turnover | 4.43 | 3.66 | 3.73 | 4.29 | 5.72 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,700,570K ÷ $609,999K
= 4.43
The inventory turnover ratio for Vista Outdoor Inc has fluctuated over the past five years. The ratio was 4.43 in 2024, indicating that the company converted its inventory into sales 4.43 times during the year. This represents an improvement from the previous year's ratio of 3.66. However, when compared to two years ago, the current ratio is slightly lower, as the company achieved a higher turnover of 4.29 in 2021 and 5.72 in 2020.
A higher inventory turnover ratio generally suggests that the company is efficiently managing its inventory levels, converting inventory into sales quickly, and potentially reducing storage and holding costs. On the other hand, a lower ratio may indicate excess inventory levels or slow-moving inventory, which can tie up capital and lead to potential obsolescence risks.
Overall, the increase in the inventory turnover ratio from the previous year is a positive indication of improved inventory management efficiency for Vista Outdoor Inc in 2024.
Peer comparison
Mar 31, 2024