Worthington Industries Inc (WOR)
Inventory turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,187,110 | 3,210,811 | 3,317,387 | 3,560,910 | 3,928,994 | 4,896,760 | 4,875,250 | 4,527,404 | 3,926,995 | 3,286,896 | 2,834,244 | 2,532,351 | 2,301,917 | 2,355,357 | 2,466,765 | 2,615,782 | 2,906,884 | 3,042,793 | 3,173,059 | 3,279,601 |
| Inventory | US$ in thousands | 191,716 | 576,411 | 672,296 | 194,499 | 601,124 | 654,624 | 727,135 | 759,140 | 869,198 | 839,588 | 742,408 | 564,754 | 413,181 | 304,443 | 319,478 | 405,101 | 376,871 | 379,787 | 422,163 | 484,280 |
| Inventory turnover | 16.62 | 5.57 | 4.93 | 18.31 | 6.54 | 7.48 | 6.70 | 5.96 | 4.52 | 3.91 | 3.82 | 4.48 | 5.57 | 7.74 | 7.72 | 6.46 | 7.71 | 8.01 | 7.52 | 6.77 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,187,110K ÷ $191,716K
= 16.62
Analyzing Worthington Industries Inc's inventory turnover over the past 20 periods, we observe fluctuations in the ratio. The highest inventory turnover was recorded at 18.31 during May 2023, indicating that the company sold its inventory 18.31 times during that period. Conversely, the lowest turnover of 3.82 occurred in August 2021.
Overall, the trend in inventory turnover appears to fluctuate, indicating potential variations in sales efficiency and inventory management practices. The average inventory turnover ratio over this period is approximately 7, suggesting that, on average, Worthington Industries Inc has turned over its inventory about 7 times annually.
It is essential for the company to monitor inventory turnover consistently to ensure optimal inventory management and efficient use of resources. Fluctuations in inventory turnover may signal changes in demand, production efficiency, or inventory holding costs, which should be investigated further to maintain profitability and liquidity.
Peer comparison
Feb 29, 2024
Feb 29, 2024