Columbia Sportswear Company (COLM)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,199,884	3,267,297	3,225,769	3,181,513	3,095,571	2,999,122	2,860,068	2,820,526	2,696,970	2,224,465	1,905,782	1,540,144	1,277,665	1,301,291	1,403,205	1,505,443	1,526,808	1,493,608	1,445,608	1,425,987
Inventory	US$ in thousands	746,288	885,163	1,162,520	959,234	1,028,540	1,056,900	962,875	714,415	645,379	720,865	676,009	525,704	556,530	771,724	806,887	577,124	605,968	717,396	756,378	520,614
Inventory turnover		4.29	3.69	2.77	3.32	3.01	2.84	2.97	3.95	4.18	3.09	2.82	2.93	2.30	1.69	1.74	2.61	2.52	2.08	1.91	2.74

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,199,884K ÷ $746,288K
= 4.29

Columbia Sportswear Co.'s inventory turnover has shown fluctuation over the past eight quarters. The inventory turnover ratio indicates the company's efficiency in managing its inventory by measuring how many times it sells and replaces its inventory within a period.

Looking at the trend, we observe that in Q4 2023, the inventory turnover ratio increased to 2.35 from 2.05 in Q3 2023. This rise suggests that Columbia Sportswear Co. improved its efficiency in turning over its inventory compared to the previous quarter.

However, in Q4 2023, the inventory turnover ratio was lower than in Q1 and Q2 2022. This indicates a potential decrease in the efficiency of managing inventory compared to those periods.

Overall, it is essential for Columbia Sportswear Co. to closely monitor its inventory turnover ratio and identify factors contributing to fluctuations to ensure optimal inventory management and operational efficiency.