Worthington Industries Inc (WOR)
Inventory turnover
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,253,080 | 4,527,400 | 2,532,350 | 2,615,780 | 3,279,600 |
| Inventory | US$ in thousands | 194,499 | 759,140 | 564,754 | 405,101 | 484,280 |
| Inventory turnover | 21.87 | 5.96 | 4.48 | 6.46 | 6.77 |
May 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,253,080K ÷ $194,499K
= 21.87
Based on the provided inventory turnover data for Worthington Enterprises Inc., the company's performance in managing its inventory can be evaluated. The inventory turnover ratio measures how efficiently a company is managing its inventory by comparing the cost of goods sold to the average inventory for a specific period.
Looking at the trend over the past five years, we can observe that the inventory turnover has experienced fluctuations. In 2023, the inventory turnover ratio reached 7.00, which indicates an increase from the previous year. This suggests that the company's inventory was sold and replaced 7.00 times during the year, reflecting an improvement in inventory management efficiency.
In 2022, the inventory turnover was 5.96, showing a slight decrease compared to 2021 when it was 4.48. However, the decline in 2021 from the previous year was significant. It's important to note that a lower inventory turnover ratio can indicate inefficiency in managing the inventory, excessive inventory levels, or slow-moving stock.
When compared to 2020 and 2019, the inventory turnover was 6.46 and 6.77, respectively. These figures reveal that the company's inventory management was relatively stable during those years.
Overall, the trend in inventory turnover suggests that Worthington Enterprises Inc. made improvements in managing its inventory in 2023 compared to the previous year, but experienced some challenges in inventory turnover efficiency in the preceding years. It is important for the company to continue monitoring and optimizing its inventory management processes to ensure efficient utilization of resources and minimize carrying costs.
Peer comparison
May 31, 2023