Hayward Holdings Inc (HAYW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 520,849 | 515,502 | 717,101 | 746,012 | 478,400 |
| Inventory | US$ in thousands | 216,472 | 215,180 | 283,658 | 233,449 | 145,300 |
| Inventory turnover | 2.41 | 2.40 | 2.53 | 3.20 | 3.29 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $520,849K ÷ $216,472K
= 2.41
Hayward Holdings Inc's inventory turnover ratio has been showing a declining trend over the past five years.
As of December 31, 2020, the inventory turnover was calculated to be 3.29 times, indicating that the company sold and replaced its inventory approximately 3.29 times during that year. However, by December 31, 2024, the inventory turnover had decreased to 2.41 times, signifying a slowdown in the rate at which the company is selling and replenishing its inventory.
A decreasing inventory turnover ratio can suggest potential issues such as overstocking, slow-moving inventory, or challenges in efficiently managing inventory levels. It may also indicate that the company is facing difficulties in converting its inventory into sales in a timely manner.
Overall, Hayward Holdings Inc's decreasing inventory turnover over the years may warrant a closer examination of its inventory management practices and supply chain efficiency to address any underlying issues that could be impacting its operational performance.
Peer comparison
Dec 31, 2024