Graham Holdings Co (GHC)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,324,540	3,102,930	2,657,720	2,114,520	1,912,110
Inventory	US$ in thousands	295,808	297,211	226,811	141,471	120,622
Inventory turnover		11.24	10.44	11.72	14.95	15.85

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,324,540K ÷ $295,808K
= 11.24

To analyze Graham Holdings Co's inventory turnover, we can observe the trend over the years:

1. As of December 31, 2020, the inventory turnover ratio was 15.85, indicating that the company sold its inventory approximately 15.85 times during that year.

2. The ratio decreased to 14.95 by December 31, 2021, suggesting a slight decrease in the efficiency of managing inventory turnover.

3. The trend continued downward, with the ratio dropping to 11.72 by December 31, 2022, and then to 10.44 by December 31, 2023. These declines may indicate challenges in selling inventory efficiently or changes in the company's inventory management practices.

4. However, there was a slight improvement by December 31, 2024, with the inventory turnover ratio increasing to 11.24. While this uptick is positive, it is essential to monitor whether this marks a reversal in the declining trend.

Overall, the decreasing trend in inventory turnover from 2020 to 2023 raises concerns about the company's ability to efficiently manage and sell its inventory. Further analysis is recommended to understand the reasons behind these fluctuations and to implement strategies to optimize inventory turnover in the future.