Winnebago Industries Inc (WGO)
Inventory turnover
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,875,900 | 3,198,500 | 4,380,280 | 3,223,760 | 2,252,000 |
| Inventory | US$ in thousands | 438,700 | 470,600 | 525,800 | 341,473 | 182,941 |
| Inventory turnover | 6.56 | 6.80 | 8.33 | 9.44 | 12.31 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,875,900K ÷ $438,700K
= 6.56
Winnebago Industries Inc's inventory turnover has shown a decreasing trend over the past five years. The inventory turnover ratio indicates the number of times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio is generally more favorable as it suggests efficient inventory management.
In the latest fiscal year ending on August 31, 2024, Winnebago Industries Inc's inventory turnover ratio was 6.56, which indicates that the company's inventory was sold and replaced approximately 6.56 times during the year. Compared to the previous years, the inventory turnover has been gradually decreasing from 6.80 in 2023 to 12.31 in 2020.
The declining trend in inventory turnover may imply that Winnebago Industries Inc is experiencing challenges in managing its inventory efficiently. A decreasing inventory turnover ratio may suggest overstocking, obsolete inventory, or a decrease in sales, which could tie up capital and lead to increased storage costs or potential write-offs.
Further analysis and comparison with industry benchmarks are recommended to assess Winnebago Industries Inc's inventory management practices effectively and identify areas for improvement to optimize working capital and overall operational efficiency.
Peer comparison
Aug 31, 2024