Essential Properties Realty(Eprt) 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 EPRT 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 '2021', EPRT's inventory turnover was 0.37, reflecting efficiency in managing inventory stock. Industry average for Real Estate Investment Trusts in '2021' stood at 2.69.
• In '2022', EPRT's inventory turnover was 0.34, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Real Estate Investment Trusts in '2022' stood at 3.22. Industry average increased by 0.53 compared to previous year.
• In '2023', EPRT's inventory turnover was 0.76, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Real Estate Investment Trusts in '2023' stood at 2.21. Industry average declined by 1.02 from previous year.
• In '2024', EPRT's inventory turnover was 0.57, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Real Estate Investment Trusts in '2024' stood at 2.74. Industry average increased by 0.53 compared to previous year.
Overall, EPRT's inventory turnover has been volatile but showed an upward trend over the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.