Grocery Outlet Holding Corp (GO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,587,469 | 3,479,364 | 3,406,506 | 3,303,480 | 3,450,555 | 3,335,951 | 3,183,288 | 3,060,191 | 2,972,872 | 2,988,384 | 2,977,459 | 2,990,703 | 2,989,181 | 2,847,390 | 2,743,180 | |||
| Inventory | US$ in thousands | 349,993 | 308,605 | 320,344 | 316,397 | 334,319 | 331,891 | 318,424 | 297,394 | 275,502 | 245,844 | 248,172 | 243,270 | 245,157 | 252,777 | 229,273 | 188,346 | 219,420 | 206,418 |
| Inventory turnover | 10.25 | 11.27 | 10.63 | 10.44 | 10.32 | 10.05 | 10.00 | 10.29 | 10.79 | 12.16 | 12.00 | 12.29 | 12.19 | 11.26 | 11.96 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,587,469K ÷ $349,993K
= 10.25
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by calculating the number of times it sells and replaces its inventory during a specific period. A higher inventory turnover indicates that the company is selling its inventory quickly and efficiently.
Analyzing the inventory turnover of Grocery Outlet Holding Corp over the past several quarters, we can observe a relatively stable trend with values ranging between 10 to 12. This consistency suggests that the company has been effectively managing its inventory levels and optimizing the balance between stocking enough inventory to meet demand without overstocking.
The highest inventory turnover was recorded in the third quarter of 2021 at 12.29, indicating that Grocery Outlet Holding Corp was able to sell and replenish its inventory more than 12 times during that period. Conversely, the lowest turnover was seen in the second quarter of 2022 at 10.00, which still demonstrates a reasonable level of efficiency in managing inventory.
Overall, the inventory turnover ratios suggest that Grocery Outlet Holding Corp has been maintaining a healthy balance in managing its inventory to meet customer demand effectively while minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2023
Dec 31, 2023