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.