Graham(Ghc) 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 GHC 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', GHC's inventory turnover was 14.95, reflecting efficiency in managing inventory stock. Industry average for Other Consumer Services in '2021' stood at 4.52.
• In '2022', GHC's inventory turnover was 14.43, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2022' stood at 4.74. Industry average increased by 0.23 compared to previous year.
• In '2023', GHC's inventory turnover was 11.84, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2023' stood at 4.35. Industry average declined by 0.39 from previous year.
• In '2024', GHC's inventory turnover was 11.21, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2024' stood at 4.99. Industry average increased by 0.63 compared to previous year.
Overall, GHC'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.