Fox Factory Holding Corp (FOXF)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 970,345 | 999,366 | 1,071,150 | 866,732 | 601,007 |
| Inventory | US$ in thousands | 404,736 | 371,841 | 350,620 | 279,837 | 127,091 |
| Inventory turnover | 2.40 | 2.69 | 3.06 | 3.10 | 4.73 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $970,345K ÷ $404,736K
= 2.40
Fox Factory Holding Corp's inventory turnover has been declining over the past five years. In 2020, the company had an inventory turnover of 4.73, indicating that its inventory was turned over approximately 4.73 times during that year. However, by the end of 2024, the inventory turnover had decreased to 2.40, suggesting that the company's inventory was only turned over approximately 2.40 times in that year.
A decreasing inventory turnover could imply several things. It may indicate that Fox Factory Holding Corp is facing challenges in managing its inventory efficiently, possibly leading to excess inventory levels or slow-moving stock. This could tie up working capital and potentially result in higher holding costs or write-downs.
A declining inventory turnover may also suggest changing customer preferences, shifts in demand, or ineffective inventory management practices within the company. Management should closely monitor and address these issues to improve inventory turnover rates and optimize working capital efficiency.
Peer comparison
Dec 31, 2024