Deluxe Corporation (DLX)

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	1,029,577	1,038,321	1,039,419	1,033,584	1,032,115	1,024,564	1,012,490	954,953	884,268	821,214	751,524	707,232	730,772	745,853	775,115	815,360	812,934	821,028	814,939	802,612
Inventory	US$ in thousands	42,088	49,259	54,899	53,923	52,267	45,249	37,505	34,527	34,928	35,355	33,267	37,119	40,130	50,512	47,525	42,681	39,921	42,194	46,097	45,052
Inventory turnover		24.46	21.08	18.93	19.17	19.75	22.64	27.00	27.66	25.32	23.23	22.59	19.05	18.21	14.77	16.31	19.10	20.36	19.46	17.68	17.82

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,029,577K ÷ $42,088K
= 24.46

The inventory turnover for Deluxe Corp. has been fluctuating over the past eight quarters, with values ranging from a low of 18.93 to a high of 27.66. The trend appears to be decreasing overall, as the most recent quarter, Q4 2023, shows a turnover of 24.46, lower than the peak turnover of 27.66 recorded in Q1 2022. This downward trend may indicate potential issues with managing inventory efficiently.

A high inventory turnover generally indicates that the company is effectively selling its inventory and not holding excess stock, which can tie up capital. On the other hand, a low inventory turnover may suggest slow sales, obsolete inventory, or overstocking.

Deluxe Corp. may need to assess its inventory management practices to improve efficiency and maintain a healthy balance between stocking enough inventory to meet demand without overstocking. Monitoring and analyzing the inventory turnover ratio regularly can help the company make informed decisions regarding inventory levels and optimize its operations.