Graham Holdings Co (GHC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,980 | -7,688 | -18,420 | 47,588 | -100,355 |
| Inventory | US$ in thousands | 297,211 | 226,811 | 141,471 | 120,622 | 108,928 |
| Inventory turnover | 0.07 | -0.03 | -0.13 | 0.39 | -0.92 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $20,980K ÷ $297,211K
= 0.07
The inventory turnover for Graham Holdings Co. has exhibited a decreasing trend over the past five years. The ratio decreased from 18.57 in 2019 to 15.85 in 2020, further declining to 14.95 in 2021, followed by 11.72 in 2022 and 10.44 in 2023. This suggests that the company has been carrying inventory for a longer period relative to its sales. A decreasing inventory turnover may indicate inefficient inventory management, overstocking, obsolescence, or slowing sales. Analyzing the underlying reasons for the decrease in inventory turnover will be crucial for Graham Holdings Co. to optimize its inventory levels and enhance its overall operational efficiency.
Peer comparison
Dec 31, 2023