Worthington Steel Inc (WS)
Inventory turnover
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,990,800 | 3,271,180 | 3,673,470 | 1,756,560 |
| Inventory | US$ in thousands | 405,300 | 414,754 | 569,497 | 442,931 |
| Inventory turnover | 7.38 | 7.89 | 6.45 | 3.97 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,990,800K ÷ $405,300K
= 7.38
Worthington Steel Inc's inventory turnover has shown a generally positive trend over the last four years. The company's inventory turnover ratio has increased from 3.97 in August 2021 to 7.38 in May 2024, indicating that the company is effectively managing its inventory levels.
A higher inventory turnover ratio suggests that Worthington Steel is selling its products more efficiently and swiftly. This could imply strong demand for its products or effective inventory management practices, such as just-in-time inventory systems.
The consistent improvement in inventory turnover over the years could indicate that Worthington Steel has been able to streamline its operations and optimize its supply chain management, leading to better working capital management and potentially higher profitability.
Overall, Worthington Steel's inventory turnover trend suggests that the company has been efficient in managing its inventory levels and converting them into sales, which could contribute positively to its financial performance and competitiveness in the market.
Peer comparison
May 31, 2024