Companhia De Saneamento Basico Do Estado De Sao Paulo - Sabesp (Each Repstg 250 Common Shares)(Sbs) 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 SBS 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', SBS's inventory turnover was 112.77, reflecting efficiency in managing inventory stock. Industry average for Water Supply in '2021' stood at 8.08.
• In '2022', SBS's inventory turnover was 120.72, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Water Supply in '2022' stood at 7.36. Industry average declined by 0.72 from previous year.
• In '2023', SBS's inventory turnover was 152.69, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Water Supply in '2023' stood at 5.63. Industry average declined by 1.73 from previous year.
• In '2024', SBS's inventory turnover was 342.95, reflecting efficiency in managing inventory stock. The increase since '2023' reflects strengthening financial performance. Industry average for Water Supply in '2024' stood at 5.37. Industry average declined by 0.27 from previous year.
Overall, SBS'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.