Graham Holdings Co (GHC)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	867,395	141,091	30,536	11,065	-7,687	-115,568	-64,308	-35,885	-14,095	-9,996	-9,137	29,813	59,379	-26,057	-47,673	-77,717	-100,348	-51,643	-47,895	-60,884
Inventory	US$ in thousands	297,211	279,211	259,224	246,220	226,811	209,804	178,280	156,678	141,471	100,258	126,395	132,136	120,622	124,258	121,490	117,440	108,928	113,196	120,415	107,344
Inventory turnover		2.92	0.51	0.12	0.04	-0.03	-0.55	-0.36	-0.23	-0.10	-0.10	-0.07	0.23	0.49	-0.21	-0.39	-0.66	-0.92	-0.46	-0.40	-0.57

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $867,395K ÷ $297,211K
= 2.92

The inventory turnover ratio for Graham Holdings Co. has been relatively stable over the past eight quarters, ranging from 10.44 to 14.42. This ratio measures how efficiently the company manages its inventory by indicating how many times during a specific period the company sells and replaces its inventory.

A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly, which can be a positive sign of effective inventory management and liquidity. Conversely, a lower ratio may suggest overstocking or slow-moving inventory.

In this case, Graham Holdings Co. has maintained a steady inventory turnover ratio above 10 in each quarter, demonstrating efficient inventory management. However, the slight decline in the ratio from Q1 2022 to Q1 2023 may warrant further investigation to ensure that the company's inventory levels remain optimal going forward.