Walgreens Boots Alliance Inc (WBA)
Inventory turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 166,265,000 | 149,818,000 | 134,560,000 | 130,222,000 | 141,859,000 |
| Inventory | US$ in thousands | 8,320,000 | 8,257,000 | 8,353,000 | 8,159,000 | 7,917,000 |
| Inventory turnover | 19.98 | 18.14 | 16.11 | 15.96 | 17.92 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $166,265,000K ÷ $8,320,000K
= 19.98
Walgreens Boots Alliance Inc's inventory turnover has been consistently increasing over the past five years. The ratio has shown a steady growth trend from 15.96 in August 2021 to 19.98 in August 2024. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales at a faster rate. A higher inventory turnover ratio suggests that Walgreens Boots Alliance Inc is efficiently selling its products without excessive stockpiling, which can positively impact the company's profitability and cash flow. Overall, the upward trend in inventory turnover reflects effective inventory management practices at Walgreens Boots Alliance Inc.
Peer comparison
Aug 31, 2024