Woodward Inc (WWD)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,656,560	2,556,151	2,453,641	2,319,260	2,171,191	2,096,999	2,026,517	1,971,530	1,954,350	1,931,348	1,901,813	1,901,876	1,996,702	2,173,184	1,724,359	1,869,410	1,926,407	1,846,863	2,454,653	2,321,709
Inventory	US$ in thousands	559,673	517,843	531,834	567,784	573,834	514,287	503,664	484,933	451,834	419,971	427,492	422,321	445,463	437,943	505,943	530,906	520,266	516,836	531,163	534,320
Inventory turnover		4.75	4.94	4.61	4.08	3.78	4.08	4.02	4.07	4.33	4.60	4.45	4.50	4.48	4.96	3.41	3.52	3.70	3.57	4.62	4.35

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,656,560K ÷ $559,673K
= 4.75

The inventory turnover ratio for Woodward Inc has shown a generally positive trend over the past eight quarters, indicating the company's efficiency in managing its inventory. The ratio increased from 3.37 in Q1 2023 to 4.16 in Q1 2024, reaching its peak in Q4 2023 at 4.32. This demonstrates that Woodward has been able to sell its inventory more frequently in recent quarters.

The quarterly fluctuations in the inventory turnover ratio suggest that Woodward may be managing its inventory levels more effectively to meet demand fluctuations or improve operational efficiency. Overall, the consistent improvement in the inventory turnover ratio reflects positively on Woodward's inventory management practices, as higher turnover ratios indicate that the company is selling goods quickly relative to the level of inventory held.