Hasbro Inc (HAS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,888,900 | 4,457,200 | 4,097,400 | 4,016,850 | 3,375,950 |
| Inventory | US$ in thousands | 332,000 | 676,800 | 552,100 | 395,600 | 446,105 |
| Inventory turnover | 14.73 | 6.59 | 7.42 | 10.15 | 7.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,888,900K ÷ $332,000K
= 14.73
Hasbro, Inc.'s inventory turnover has displayed fluctuations over the past five years. The inventory turnover ratio indicates the efficiency of managing inventory by measuring how many times a company sells and replaces its stock within a given period.
In 2023, Hasbro's inventory turnover ratio improved significantly to 5.14 times compared to the previous year, where it was at 2.82. This suggests that Hasbro was able to sell and replace its inventory more frequently in 2023, reflecting efficient inventory management.
However, when comparing the ratio to the years 2021 and 2020, where inventory turnover was at 3.49 and 4.34, respectively, the current ratio of 5.14 indicates a more rapid turnover of inventory in 2023. This could be a positive sign, as a higher turnover ratio generally implies strong sales and demand for Hasbro's products.
Furthermore, compared to 2019 when the inventory turnover was at 4.05, the 2023 ratio of 5.14 demonstrates a notable improvement over the four-year period. This trend suggests that Hasbro has been increasingly effective in managing its inventory levels and optimizing its supply chain processes.
Overall, Hasbro's increasing inventory turnover ratio signifies enhanced efficiency in inventory management and potentially healthier sales performance in 2023 compared to previous years.