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', LEU's inventory turnover was 2.02, reflecting efficiency in managing inventory stock. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2021' stood at 5.18.
• In '2022', LEU's inventory turnover was 1.17, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2022' stood at 4.56. Industry average declined by 0.61 from previous year.
• In '2023', LEU's inventory turnover was 0.81, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2023' stood at 4.36. Industry average declined by 0.21 from previous year.
• In '2024', LEU's inventory turnover was 1.41, reflecting efficiency in managing inventory stock. The increase since '2023' reflects strengthening financial performance. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2024' stood at 4.14. Industry average declined by 0.22 from previous year.
Overall, LEU's inventory turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory

Good Range: Typically 4 to 12 depending on industry.