Worthington Industries Inc (WOR)
Inventory turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 960,684 | 4,253,080 | 4,527,400 | 2,532,350 | 2,615,780 |
| Inventory | US$ in thousands | 164,615 | 607,968 | 759,140 | 564,754 | 405,101 |
| Inventory turnover | 5.84 | 7.00 | 5.96 | 4.48 | 6.46 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $960,684K ÷ $164,615K
= 5.84
Worthington Industries Inc's inventory turnover has fluctuated over the past five years. In May 2020, the company had an inventory turnover of 6.46, indicating that it sold and replaced its inventory 6.46 times during that year. This ratio decreased to 4.48 in May 2021, suggesting a slower inventory turnover rate. However, there was an improvement in inventory turnover in subsequent years, reaching 5.96 in May 2022, 7.00 in May 2023, and then slightly declining to 5.84 in May 2024.
Overall, it seems that Worthington Industries Inc has made efforts to manage its inventory more efficiently, as indicated by the increasing trend in inventory turnover from 2021 to 2023. A higher inventory turnover ratio generally implies more effective inventory management and faster sales of goods. However, the slight decrease in 2024 may warrant further investigation to ensure that inventory turnover remains at an optimal level to support the company's operations and financial performance.
Peer comparison
May 31, 2024