Six Flags Entertainment Corporation (FUN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,177,980 | 164,246 | 112,466 | 27,991 | 126,264 |
| Inventory | US$ in thousands | 44,097 | 45,297 | 32,113 | 47,479 | 32,902 |
| Inventory turnover | 26.71 | 3.63 | 3.50 | 0.59 | 3.84 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,177,980K ÷ $44,097K
= 26.71
The inventory turnover ratio for Six Flags Entertainment Corporation has shown a significant improvement over the last five years. In 2023, the inventory turnover ratio reached 26.71, reflecting a substantial increase from 3.63 in 2022. This notable enhancement suggests that the company efficiently managed its inventory levels during the year, converting its inventory into sales at a much faster pace.
The significant surge in inventory turnover from 2022 to 2023 indicates that Six Flags was able to sell its inventory multiple times throughout the year, which is a positive sign of operational effectiveness. This improved efficiency in managing inventory levels could be attributed to better inventory management practices, streamlined operations, or more accurate demand forecasting.
Compared to the historical trend, the inventory turnover ratio in 2023 stands out as exceptionally high, demonstrating a remarkable performance in inventory management. This rapid turnover of inventory indicates that Six Flags was successful in minimizing excess inventory and avoiding obsolete stock, leading to improved liquidity and profitability.
Overall, the substantial increase in inventory turnover in 2023 showcases Six Flags Entertainment Corporation's ability to optimize its inventory utilization efficiently, which can contribute to enhanced financial performance and competitiveness in the market.
Peer comparison
Dec 31, 2023