Grocery Outlet Holding Corp (GO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,855,190 | 3,450,560 | 2,972,870 | 2,989,180 | 2,460,340 |
| Inventory | US$ in thousands | 349,993 | 334,319 | 275,502 | 245,157 | 219,420 |
| Inventory turnover | 11.02 | 10.32 | 10.79 | 12.19 | 11.21 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,855,190K ÷ $349,993K
= 11.02
Inventory turnover measures how efficiently a company manages its inventory by indicating how many times inventory is sold and replaced within a specific period. For Grocery Outlet Holding Corp, the inventory turnover ratio has fluctuated over the past five years. In 2023, the inventory turnover increased to 11.02 from 10.32 in 2022, indicating that the company's inventory was sold and replaced more frequently during the year. However, this figure is still below the peak recorded in 2020 at 12.19. Generally, a higher inventory turnover ratio suggests better efficiency in managing inventory levels and indicates that the company is selling goods quickly without holding excess inventory. It is crucial to monitor inventory turnover consistently to ensure optimal inventory management and operational efficiency.
Peer comparison
Dec 31, 2023