Brunswick Corporation (BC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,886,300 | 4,771,300 | 4,865,000 | 4,180,200 | 3,134,500 |
| Inventory | US$ in thousands | 1,302,600 | 1,476,800 | 1,471,400 | 1,208,000 | 711,800 |
| Inventory turnover | 2.98 | 3.23 | 3.31 | 3.46 | 4.40 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,886,300K ÷ $1,302,600K
= 2.98
Based on the inventory turnover data provided for Brunswick Corporation, we observe a decreasing trend in the company's inventory turnover ratio over the years. The inventory turnover ratio, which measures how efficiently the company manages its inventory by comparing the cost of goods sold to average inventory levels, has decreased from 4.40 in December 2020 to 2.98 in December 2024.
A decreasing inventory turnover ratio can indicate potential issues such as overstocking, slow-moving inventory, or inefficient inventory management practices. It suggests that Brunswick Corporation is taking longer to sell its inventory or is carrying excess inventory relative to its sales levels.
This trend warrants further investigation to understand the underlying reasons for the decline in inventory turnover. Management may need to reassess its inventory management strategies, improve demand forecasting, optimize inventory levels, and streamline supply chain operations to enhance inventory turnover efficiency and overall operational performance.
Peer comparison
Dec 31, 2024