Boyd Gaming Corporation (BYD)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,880,390 1,719,920 1,565,200 1,432,480 1,037,090
Inventory US$ in thousands 21,235 20,692 22,173 20,090 22,616
Inventory turnover 88.55 83.12 70.59 71.30 45.86

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,880,390K ÷ $21,235K
= 88.55

Boyd Gaming Corporation has shown a consistent improvement in its inventory turnover ratio over the past five years. The ratio has increased steadily from 45.86 in December 2020 to 88.55 in December 2024. This upward trend indicates that the company is managing its inventory more efficiently, selling goods at a faster rate relative to its inventory levels.

A higher inventory turnover ratio is generally seen as a positive indicator, suggesting that the company is effectively managing its inventory levels and avoiding excess stock. This can lead to cost savings, improved cash flow, and potentially higher profitability.

Boyd Gaming Corporation's significant increase in inventory turnover over the specified period reflects strong operational performance and effective inventory management practices. It demonstrates the company's ability to optimize its inventory utilization and adapt to changing market demands, contributing to its overall financial health and performance.