Celsius Holdings Inc (CELH)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,200,628 | 691,089 | 738,245 | 712,255 | 684,875 | 602,642 | 521,550 | 449,362 | 382,735 | 346,386 | 294,019 | 236,142 | 186,104 | 141,735 | 103,824 | 84,024 | 69,751 | 65,535 | 58,031 | 50,263 |
| Inventory | US$ in thousands | 131,165 | 197,572 | 180,669 | 197,504 | 229,275 | 198,704 | 152,545 | 154,280 | 173,289 | 153,933 | 162,138 | 184,094 | 191,222 | 122,311 | 63,827 | 36,892 | 18,404 | 15,679 | 23,512 | 21,038 |
| Inventory turnover | 9.15 | 3.50 | 4.09 | 3.61 | 2.99 | 3.03 | 3.42 | 2.91 | 2.21 | 2.25 | 1.81 | 1.28 | 0.97 | 1.16 | 1.63 | 2.28 | 3.79 | 4.18 | 2.47 | 2.39 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,200,628K ÷ $131,165K
= 9.15
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory during a specific period.
In the case of Celsius Holdings Inc, the inventory turnover has fluctuated over the last few years. From March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 0.97 to a high of 9.15.
A higher inventory turnover generally indicates that the company is selling its inventory quickly and efficiently. Conversely, a lower inventory turnover may suggest that the company is holding onto inventory for longer periods, potentially leading to higher storage costs or obsolescence risks.
In the period under review, Celsius Holdings Inc experienced a significant increase in inventory turnover from the lowest point of 0.97 on December 31, 2021, to the highest point of 9.15 on December 31, 2024. This upward trend indicates an improvement in the company's efficiency in managing its inventory during this period.
However, it is essential to consider the reasons behind such fluctuations in inventory turnover. Factors such as changes in consumer demand, production efficiency, inventory management policies, and supply chain disruptions can all impact inventory turnover.
Overall, monitoring inventory turnover is crucial for assessing how effectively Celsius Holdings Inc is utilizing its inventory and identifying potential areas for improvement in inventory management strategies.
Peer comparison
Dec 31, 2024
Dec 31, 2024