WD-40 Company (WDFC)
Inventory turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 460,295 | 418,724 | 404,147 | 224,370 | 185,481 |
| Inventory | US$ in thousands | 79,088 | 86,522 | 104,101 | 55,752 | 41,264 |
| Inventory turnover | 5.82 | 4.84 | 3.88 | 4.02 | 4.49 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $460,295K ÷ $79,088K
= 5.82
Analysis of WD-40 Company's inventory turnover shows an increasing trend over the past five years. The inventory turnover ratio improved from 4.49 in 2020 to 5.82 in 2024, indicating that the company is managing its inventory more efficiently. A higher inventory turnover suggests that WD-40 is selling its products more quickly, reducing the risk of inventory obsolescence and carrying costs. This performance demonstrates effective inventory management practices and implies that the company is successfully converting its inventory into sales revenue.
Peer comparison
Aug 31, 2024