Vestis Corporation (VSTS)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,970,220 | 1,909,680 | 1,765,640 | 1,813,980 |
| Inventory | US$ in thousands | 573,755 | 576,579 | 557,143 | — |
| Inventory turnover | 3.43 | 3.31 | 3.17 | — |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,970,220K ÷ $573,755K
= 3.43
The inventory turnover ratio of Vestis Corporation has shown a gradual increase over the past three years. It increased from 3.17 in 2021 to 3.31 in 2022 and further to 3.43 in 2023. This indicates that the company is managing its inventory more efficiently and is selling its inventory more frequently within a specific period. A higher inventory turnover ratio is generally considered favorable as it shows that the company is effectively selling its goods and replenishing its inventory. This trend suggests that Vestis Corporation has improved its inventory management practices and is efficiently converting its inventory into sales.
Peer comparison
Sep 30, 2023