Deluxe Corporation (DLX)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 994,323 | 1,000,023 | 1,008,546 | 1,029,485 | 1,029,663 | 1,038,363 | 1,039,488 | 1,033,688 | 1,032,219 | 1,024,719 | 1,012,645 | 955,045 | 884,360 | 821,260 | 751,609 | 707,292 | 730,783 | 754,083 | 783,306 | 823,523 |
| Inventory | US$ in thousands | 36,393 | 39,602 | 38,028 | 38,665 | 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 |
| Inventory turnover | 27.32 | 25.25 | 26.52 | 26.63 | 24.46 | 21.08 | 18.93 | 19.17 | 19.75 | 22.65 | 27.00 | 27.66 | 25.32 | 23.23 | 22.59 | 19.05 | 18.21 | 14.93 | 16.48 | 19.29 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $994,323K ÷ $36,393K
= 27.32
Deluxe Corporation's inventory turnover has shown fluctuations over the years based on the provided data. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced during a certain period. A higher inventory turnover typically signifies that the company is selling its products quickly and efficiently.
From March 31, 2020, to December 31, 2021, Deluxe Corporation's inventory turnover experienced a steady increase from 19.29 to 25.32, indicating an improved efficiency in managing inventory levels and sales. However, from March 31, 2022, to December 31, 2024, the inventory turnover ratio fluctuated between 18.93 and 27.32, showing some variability in the company's ability to turn over its inventory.
It is essential for Deluxe Corporation to monitor its inventory turnover ratio continuously to ensure optimal inventory management and sales performance. An analysis of the factors contributing to these fluctuations in inventory turnover can provide valuable insights into the company's operational efficiency and effectiveness in managing its inventory levels.