Deluxe Corporation (DLX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 995,311 | 1,029,580 | 1,032,100 | 884,300 | 730,800 |
| Inventory | US$ in thousands | 36,393 | 42,088 | 52,267 | 34,928 | 40,130 |
| Inventory turnover | 27.35 | 24.46 | 19.75 | 25.32 | 18.21 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $995,311K ÷ $36,393K
= 27.35
Deluxe Corporation's inventory turnover has shown a fluctuating trend over the past five years. Beginning at 18.21 times in December 2020, the ratio increased to 25.32 times by December 2021. The turnover rate then decreased slightly to 19.75 times in December 2022, before showing a significant improvement to 24.46 times in December 2023. The most recent data point indicates a further increase to 27.35 times by December 2024.
Overall, the inventory turnover for Deluxe Corporation reflects efficient management of inventory levels and the company's ability to sell its inventory multiple times within a given accounting period. The upward trend in recent years suggests improved inventory management practices, which can positively impact working capital management and overall profitability.