Vestis Corporation (VSTS)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,561,546 | 2,418,082 | 2,259,927 | 2,115,965 | 1,970,215 | 1,991,607 | 1,983,285 |
| Inventory | US$ in thousands | 164,913 | 153,539 | 140,931 | 149,929 | 573,755 | 604,892 | 606,834 |
| Inventory turnover | 15.53 | 15.75 | 16.04 | 14.11 | 3.43 | 3.29 | 3.27 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,561,546K ÷ $164,913K
= 15.53
The inventory turnover ratio for Vestis Corporation has shown a consistent improvement over the past quarters, with values increasing from 3.27 in March 2023 to 16.04 in March 2024. This indicates that Vestis has been more efficient in managing its inventory levels and turning over inventory into sales during the given period.
A high inventory turnover ratio suggests that the company is able to sell its goods quickly, which is generally seen as a positive sign of efficiency and effective inventory management. Vestis' inventory turnover ratio has significantly improved from around 3.27 to over 16.04 within a year, indicating that the company has been able to streamline its inventory management processes and optimize its supply chain.
It is important to note that a very high inventory turnover ratio may also indicate potential issues such as stock shortages or lost sales due to low inventory levels. However, in the case of Vestis Corporation, the increasing trend in the inventory turnover ratio suggests that the company has been able to strike a good balance in managing its inventory levels to meet customer demand effectively.
Overall, the improving inventory turnover ratio for Vestis Corporation indicates a positive trend in inventory management efficiency, which is essential for sustaining and growing the business in the long term.
Peer comparison
Sep 30, 2024
Sep 30, 2024