Ats Common Shares(Ats) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for ATS compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
• In '2022', ATS's inventory turnover was 7.55, reflecting efficiency in managing inventory stock. Industry average for Industrial Machinery/Components in '2022' stood at 3.36.
• In '2023', ATS's inventory turnover was 7.97, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at 3.14. Industry average declined by 0.22 from previous year.
• In '2024', ATS's inventory turnover was 7.88, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 3.29. Industry average increased by 0.15 compared to previous year.
• In '2025', ATS's inventory turnover was 6.12, reflecting efficiency in managing inventory stock. The decline from '2024' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2025' stood at 4.21. Industry average increased by 0.92 compared to previous year.
Overall, ATS's inventory turnover has consistently declined during the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.