Walt Disney Company (DIS)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	20,542,000	19,649,000	22,348,000	20,415,000	20,670,000	20,459,000	18,304,000	18,605,000	18,582,000	18,191,000	17,316,000	16,943,000	16,257,000	15,007,000	19,362,000	19,463,000	20,335,000	21,542,000	17,669,000	21,776,000
Inventory	US$ in thousands	2,022,000	1,984,000	1,948,000	1,954,000	1,963,000	1,900,000	1,848,000	1,830,000	1,742,000	1,590,000	1,428,000	1,345,000	1,331,000	1,344,000	1,406,000	1,480,000	1,583,000	1,559,000	1,531,000	1,571,000
Inventory turnover		10.16	9.90	11.47	10.45	10.53	10.77	9.90	10.17	10.67	11.44	12.13	12.60	12.21	11.17	13.77	13.15	12.85	13.82	11.54	13.86

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,542,000K ÷ $2,022,000K
= 10.16

The inventory turnover for Walt Disney Company has shown a fluctuating trend over the past eight quarters, ranging from a low of 9.90 to a high of 13.86. The average inventory turnover ratio during this period was approximately 11.67. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally considered positive as it implies efficient inventory management.

Walt Disney has maintained a relatively healthy level of inventory turnover, with most ratios exceeding 10. This suggests that the company has been effectively managing its inventory levels, ensuring that its products are sold within a reasonable time frame. However, the slight fluctuations in the ratio indicate some variability in the company's inventory management efficiency over the periods analyzed.

Overall, the inventory turnover ratio for Walt Disney Company reflects a generally efficient management of its inventory, supporting its operational performance and financial health. Investors and analysts typically view a consistent and relatively high inventory turnover ratio positively, as it indicates effective utilization of assets and optimal working capital management.