Crocs Inc (CROX)
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 | 2,948,183 | 2,919,678 | 2,868,844 | 2,831,583 | 2,723,816 | 2,422,791 | 2,124,611 | 1,853,445 | 1,647,386 | 1,566,373 | 1,433,172 | 1,262,675 | 1,187,611 | 1,094,903 | 1,078,135 | 1,114,249 | 1,117,272 | 1,093,895 | 1,068,182 | 1,048,054 |
| Inventory | US$ in thousands | 385,054 | 390,163 | 436,269 | 476,112 | 471,551 | 513,748 | 501,527 | 407,589 | 213,520 | 212,496 | 209,089 | 196,477 | 175,121 | 174,119 | 146,804 | 195,755 | 172,028 | 139,839 | 134,602 | 139,209 |
| Inventory turnover | 7.66 | 7.48 | 6.58 | 5.95 | 5.78 | 4.72 | 4.24 | 4.55 | 7.72 | 7.37 | 6.85 | 6.43 | 6.78 | 6.29 | 7.34 | 5.69 | 6.49 | 7.82 | 7.94 | 7.53 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,948,183K ÷ $385,054K
= 7.66
Crocs Inc's inventory turnover has shown a generally improving trend over the past eight quarters. The inventory turnover ratio, which indicates how many times a company sells and replaces its inventory within a given period, has increased from 2.51 in Q1 2022 to 4.55 in Q4 2023. This indicates that Crocs has been managing its inventory more efficiently and effectively.
A higher inventory turnover ratio suggests that the company is selling its products more quickly, reducing the risk of excess or obsolete inventory. It also implies that Crocs is able to generate more revenue from its inventory, potentially leading to higher profitability. This improvement in inventory turnover could be a result of better inventory management practices, effective demand forecasting, or successful sales and marketing strategies.
Overall, the increasing trend in Crocs Inc's inventory turnover ratio reflects positively on the company's operational efficiency and its ability to effectively manage and sell its inventory.
Peer comparison
Dec 31, 2023
Dec 31, 2023