Columbia Sportswear Company (COLM)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,200,280	3,095,570	2,696,970	1,277,660	1,526,810
Inventory	US$ in thousands	746,288	1,028,540	645,379	556,530	605,968
Inventory turnover		4.29	3.01	4.18	2.30	2.52

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,200,280K ÷ $746,288K
= 4.29

The inventory turnover ratio for Columbia Sportswear Co. has shown fluctuations over the past five years. In 2023, the ratio increased to 2.35, indicating that the company was able to sell and replace its inventory 2.35 times during the year. This represents an improvement from the previous year's ratio of 1.70.

Although the ratio dropped in 2022, it rebounded to its 2021 level of 2.35 in 2023. The company's ability to turn over its inventory efficiently is crucial for managing working capital and ensuring that obsolete or unsold inventory does not accumulate.

It is important to note that while the inventory turnover ratio has shown variability, it generally remains within a reasonable range, indicating that Columbia Sportswear Co. is effectively managing its inventory levels to meet customer demand. Business cycles, seasonal fluctuations, and changes in consumer preferences can all impact inventory turnover, and the company's ability to adapt to these factors will be key to maintaining a healthy ratio in the future.