Six Flags Entertainment Corporation (FUN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,004,300 | 1,177,980 | 164,246 | 112,466 | 27,991 |
| Inventory | US$ in thousands | 71,104 | 44,097 | 45,297 | 32,113 | 47,479 |
| Inventory turnover | 14.12 | 26.71 | 3.63 | 3.50 | 0.59 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,004,300K ÷ $71,104K
= 14.12
The inventory turnover ratio for Six Flags Entertainment Corporation has shown a significant improvement over the years. As of December 31, 2020, the inventory turnover was low at 0.59, indicating that the company was taking a longer time to sell its inventory. However, by December 31, 2024, the inventory turnover had increased substantially to 14.12, indicating a much faster rate of inventory turnover.
This improvement suggests that Six Flags has been able to manage its inventory more efficiently over time, which can be a positive sign of effective inventory management and potentially lower carrying costs. The sharp increase in inventory turnover from 2020 to 2023, reaching 26.71, signifies a significant enhancement in the company's ability to sell through its inventory quickly.
A high inventory turnover ratio can also indicate strong sales performance and effective demand forecasting, allowing the company to avoid obsolete inventory and generate higher revenue from its inventory assets. Overall, the increasing trend in Six Flags' inventory turnover ratio reflects improvements in their operations and efficiency in managing their inventory levels.
Peer comparison
Dec 31, 2024