Fox Factory Holding Corp (FOXF)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,283,000 | 1,327,290 | 1,080,010 | 758,457 | 617,643 |
| Inventory | US$ in thousands | 371,841 | 350,620 | 279,837 | 127,091 | 128,505 |
| Inventory turnover | 3.45 | 3.79 | 3.86 | 5.97 | 4.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,283,000K ÷ $371,841K
= 3.45
The inventory turnover ratio of Fox Factory Holding Corp has shown a declining trend over the past five years. It decreased from 4.81 in 2019 to 3.45 in 2023. This indicates that the company is selling its inventory less frequently compared to previous years, which may suggest inefficiencies in managing its inventory levels or challenges in matching supply with demand. A lower inventory turnover could also tie up more capital in inventory, potentially leading to higher carrying costs and holding back cash flow. Further analysis of the company's inventory management practices and supply chain efficiency may be necessary to address these trends and improve overall operational performance.
Peer comparison
Dec 31, 2023