Grocery Outlet Holding Corp (GO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,049,560 | 2,727,770 | 2,486,000 | 2,130,800 | 2,161,290 |
| Inventory | US$ in thousands | 394,152 | 349,993 | 334,319 | 275,502 | 245,157 |
| Inventory turnover | 7.74 | 7.79 | 7.44 | 7.73 | 8.82 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,049,560K ÷ $394,152K
= 7.74
Inventory turnover is an important financial ratio that measures how efficiently a company manages its inventory. In the case of Grocery Outlet Holding Corp, the inventory turnover ratio has shown a relatively stable trend over the past five years.
The data indicates that the company's inventory turnover was 8.82 times in December 31, 2020, which means that the company sold and replaced its inventory almost nine times during that year.
Subsequently, the inventory turnover ratio decreased slightly to 7.73 in December 31, 2021, indicating that the company took slightly longer to sell and replace its inventory. This trend continued with the inventory turnover ratios for December 31, 2022, and December 31, 2024, standing at 7.44 and 7.74, respectively.
Interestingly, in December 31, 2023, the inventory turnover ratio increased to 7.79, suggesting a slightly better efficiency in managing inventory during that year compared to the immediate previous years.
Overall, the inventory turnover ratios suggest that Grocery Outlet Holding Corp has been able to efficiently manage its inventory, with the ratio consistently above 7 times in the past five years. However, the slight decline in recent years may indicate a need to further optimize inventory management processes to improve overall efficiency.
Peer comparison
Dec 31, 2024