Walt Disney Company (DIS)

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	35,715,000	35,970,000	35,759,000	33,604,000	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	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	1,649,000	1,516,000	1,445,000
Inventory turnover		18.28	18.32	18.82	18.18	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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $35,715,000K ÷ $1,954,000K
= 18.28

The inventory turnover ratio for Walt Disney Company has shown a consistent and improving trend over the past five quarters, with values ranging from 10.17 to 18.82. The ratio measures how effectively the company manages its inventory by indicating how many times it sells and replaces its inventory during a specific period. A higher inventory turnover ratio signifies that the company is selling its products more quickly or efficiently.

The company's inventory turnover increased significantly from 10.17 in December 2022 to 18.28 in December 2023, indicating a substantial improvement in inventory management efficiency. This may be attributed to various factors such as effective inventory control, demand forecasting, and supply chain management strategies.

Overall, the increasing trend in Walt Disney Company's inventory turnover ratio reflects positive operational performance and efficient utilization of inventory resources. It suggests that the company is effectively managing its inventory levels to meet consumer demand, minimize holding costs, and optimize working capital utilization.