Golden Entertainment Inc (GDEN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 357,507 | 336,066 | 328,905 | 341,824 | 356,862 |
| Inventory | US$ in thousands | 8,097 | 8,117 | 6,637 | 5,639 | 8,237 |
| Inventory turnover | 44.15 | 41.40 | 49.56 | 60.62 | 43.32 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $357,507K ÷ $8,097K
= 44.15
Golden Entertainment Inc's inventory turnover has fluctuated over the past five years, ranging from a low of 67.64 in 2019 to a high of 87.90 in 2021. Inventory turnover measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.
A higher inventory turnover ratio, such as the peak of 87.90 in 2021, suggests that Golden Entertainment Inc is effectively managing its inventory levels and selling products quickly. This can indicate strong demand for its products, efficient inventory management practices, and effective sales and marketing strategies.
Conversely, a lower inventory turnover ratio, such as the low of 67.64 in 2019, may signify slower sales, excess inventory, or obsolete products. This could tie up capital in inventory, leading to higher storage costs and potentially resulting in discounted sales to clear out excess stock.
Overall, Golden Entertainment Inc's inventory turnover has shown variability over the years, which may point to changing market conditions, shifts in consumer demand, or adjustments in the company's supply chain management. Monitoring this ratio can provide insights into the company's operational efficiency and inventory management practices.
Peer comparison
Dec 31, 2023