Woodward Inc (WWD)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,557,560 | 2,097,000 | 1,931,350 | 2,173,180 | 2,459,880 |
| Inventory | US$ in thousands | 517,843 | 514,287 | 419,971 | 437,943 | 516,836 |
| Inventory turnover | 4.94 | 4.08 | 4.60 | 4.96 | 4.76 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,557,560K ÷ $517,843K
= 4.94
The inventory turnover ratio for Woodward Inc has fluctuated over the past five years. In 2023, the inventory turnover ratio increased to 4.32, indicating that the company's inventory was sold and replaced approximately 4.32 times during the year. This represents an improvement from the previous year's ratio of 3.61. However, the ratio was lower than the 4.24 recorded in both 2020 and 2019. Generally, a higher inventory turnover ratio suggests more efficient management of inventory, while a lower ratio may indicate overstocking or slow-moving inventory. Therefore, Woodward Inc's increasing inventory turnover ratio in 2023 suggests improved efficiency in converting inventory into sales compared to the previous year.