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', SIFY's inventory turnover was 10.39, reflecting efficiency in managing inventory stock. Industry average for Computer Software: Programming Data Processing in '2021' stood at 4.74.
• In '2022', SIFY's inventory turnover was 8.39, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2022' stood at 4.55. Industry average declined by 0.19 from previous year.
• In '2023', SIFY's inventory turnover was 9.83, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2023' stood at 5.41. Industry average increased by 0.86 compared to previous year.
• In '2024', SIFY's inventory turnover was 8.39, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2024' stood at 6.43. Industry average increased by 1.02 compared to previous year.
Overall, SIFY'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.