Hasbro Inc (HAS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,463,700 | 2,134,300 | 2,404,800 | 2,547,900 | 2,288,900 |
| Inventory | US$ in thousands | 274,200 | 332,000 | 676,800 | 552,100 | 395,633 |
| Inventory turnover | 5.34 | 6.43 | 3.55 | 4.61 | 5.79 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,463,700K ÷ $274,200K
= 5.34
Hasbro Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a certain period. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
In this case, Hasbro Inc's inventory turnover was 5.79 in December 31, 2020, indicating that the company sold and replaced its inventory approximately 5.79 times during that year. The ratio decreased to 4.61 by December 31, 2021, suggesting a slower rate of inventory turnover. Subsequently, the ratio further declined to 3.55 by December 31, 2022, signaling a potentially inefficient management of inventory.
However, there was a significant improvement in inventory turnover to 6.43 by December 31, 2023, indicating that the company was more effective in selling its inventory during that year. The ratio then slightly decreased to 5.34 by December 31, 2024, but still remained at a relatively healthy level compared to the previous years.
Overall, the trend in Hasbro Inc's inventory turnover shows some variability but generally reflects the company's ability to manage its inventory efficiently, although there were some periods of slower turnover. The company may want to investigate the factors causing fluctuations in the ratio to ensure optimal inventory management practices.