Crocs Inc (CROX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,948,180 | 2,723,820 | 1,647,390 | 1,187,610 | 1,117,270 |
| Inventory | US$ in thousands | 385,054 | 471,551 | 213,520 | 175,121 | 172,028 |
| Inventory turnover | 7.66 | 5.78 | 7.72 | 6.78 | 6.49 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,948,180K ÷ $385,054K
= 7.66
Crocs Inc's inventory turnover has shown a fluctuating trend over the past five years, ranging from 3.57 to 4.55. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times it sells and replaces its inventory within a specific period.
A higher inventory turnover ratio typically indicates that a company is effectively managing its inventory levels and quickly converting inventory into sales. On the other hand, a lower ratio may suggest overstocking, slow-moving inventory, or potential obsolescence issues.
In the case of Crocs Inc, the inventory turnover ratio has generally improved over the years, with the latest ratio of 4.55 in 2023 being the highest in the given period. This suggests that the company has been more efficient in managing its inventory and converting it into sales. However, it is important to consider other factors such as industry norms, seasonality, and market conditions when interpreting this ratio.
Peer comparison
Dec 31, 2023