Celsius Holdings Inc (CELH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 684,875 | 382,735 | 186,103 | 69,752 | 43,845 |
| Inventory | US$ in thousands | 229,275 | 173,289 | 191,222 | 18,404 | 15,292 |
| Inventory turnover | 2.99 | 2.21 | 0.97 | 3.79 | 2.87 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $684,875K ÷ $229,275K
= 2.99
Inventory turnover is a crucial financial ratio that indicates how efficiently a company manages its inventory. For Celsius Holdings Inc, the inventory turnover has fluctuated over the past five years. In 2023, the inventory turnover ratio improved to 2.99 from 2.21 in 2022, suggesting that the company is selling its inventory more quickly.
However, it is important to note that in 2021, the inventory turnover ratio was relatively low at 0.97, indicating that the company may have had excess inventory or faced challenges in selling its products efficiently. The significant increase to 3.79 in 2020 reflects a positive trend as it shows that inventory was turned over almost four times during that year, indicating improved efficiency in managing inventory levels.
Overall, while there have been fluctuations in the inventory turnover ratio for Celsius Holdings Inc, the recent improvement in 2023 suggests that the company has been more successful in managing its inventory and converting it into sales. Further analysis and comparison with industry benchmarks can provide additional insights into the company's inventory management practices.
Peer comparison
Dec 31, 2023