Woodward Inc (WWD)

Inventory turnover

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Cost of revenue US$ in thousands 2,792,900 2,557,560 2,097,000 1,931,350 2,173,180
Inventory US$ in thousands 609,092 517,843 514,287 419,971 437,943
Inventory turnover 4.59 4.94 4.08 4.60 4.96

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,792,900K ÷ $609,092K
= 4.59

Woodward Inc's inventory turnover has shown some fluctuations over the past five years. The company's inventory turnover ratio was 4.59 in 2024, compared to 4.94 in 2023, indicating a slight decrease in the efficiency of inventory management. This decline suggests that Woodward Inc took longer to sell its inventory in 2024 compared to the previous year.

However, when looking at the trend over the entire five-year period, the inventory turnover has remained relatively stable, ranging between 4.08 and 4.96. This consistency indicates that Woodward Inc has generally been effective in managing its inventory levels and swiftly turning them into sales. A high inventory turnover ratio is typically seen as a positive sign, as it suggests that the company is efficiently managing its inventory and avoiding excess stock holding.

Overall, based on the inventory turnover data, Woodward Inc has shown consistent performance in managing its inventory effectively, although the slight decrease in 2024 compared to the previous year may warrant further investigation to understand the underlying reasons.