Vestis Corporation (VSTS)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,011,845 | 1,970,215 | 1,991,607 | 1,983,285 | |||
| Inventory | US$ in thousands | 550,043 | 573,755 | 604,892 | 606,834 | 606,834 | 576,579 | — |
| Inventory turnover | 3.66 | 3.43 | 3.29 | 3.27 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,011,845K ÷ $550,043K
= 3.66
Vestis Corporation's inventory turnover ratios for the past four quarters have shown consistent performance, ranging from 3.27 to 3.66. This indicates that the company is efficiently managing its inventory levels and is able to turn over its inventory multiple times throughout the year. Generally, a higher inventory turnover ratio signifies better inventory management and liquidity. Vestis Corporation's inventory turnover ratios are in line with industry benchmarks, suggesting that the company is effectively managing its inventory levels to meet customer demand while minimizing excess inventory holding costs. However, it is important to continue monitoring this ratio over time to ensure that efficiency is maintained and improved where possible.
Peer comparison
Dec 31, 2023
Dec 31, 2023