Vestis Corporation (VSTS)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,570,820 | 1,970,220 | 1,909,680 | 1,765,640 | 1,813,980 |
| Inventory | US$ in thousands | 164,913 | 573,755 | 576,579 | 557,143 | — |
| Inventory turnover | 15.59 | 3.43 | 3.31 | 3.17 | — |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,570,820K ÷ $164,913K
= 15.59
The inventory turnover ratio for Vestis Corporation has shown a significant improvement over the years, indicating a more efficient management of inventory. The ratio has steadily increased from 3.17 in 2021 to 15.59 in 2024, reflecting a notable enhancement in inventory turnover efficiency. This suggests that Vestis Corporation is selling its inventory more quickly compared to previous years, which can lead to improved liquidity and profitability. The substantial increase in the inventory turnover ratio from 2023 to 2024 demonstrates a significant improvement in managing and selling inventory, potentially due to better inventory control, demand forecasting, and inventory management practices. Overall, the trend in inventory turnover for Vestis Corporation reflects positively on its operational efficiency and ability to convert inventory into sales.
Peer comparison
Sep 30, 2024