Harley-Davidson Inc (HOG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,377,710 | 4,049,700 | 3,403,730 | 3,624,540 | 3,030,270 |
| Inventory | US$ in thousands | 745,793 | 929,951 | 950,960 | 712,942 | 523,497 |
| Inventory turnover | 4.53 | 4.35 | 3.58 | 5.08 | 5.79 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,377,710K ÷ $745,793K
= 4.53
The inventory turnover ratio for Harley-Davidson Inc has shown a decreasing trend over the years. In December 31, 2020, the inventory turnover was 5.79 times, indicating that the company was able to sell and replace its inventory almost 6 times during the year. However, by December 31, 2024, the inventory turnover decreased to 4.53, suggesting a slowdown in the company's ability to move its inventory efficiently.
A high inventory turnover ratio is generally preferred as it signifies that the company is selling its products quickly and efficiently. A decrease in inventory turnover could indicate overstocking, slowing sales, or ineffective inventory management practices. In Harley-Davidson's case, the declining trend in inventory turnover may warrant a closer look at their inventory management strategies to optimize the use of resources and improve operational efficiency.
Peer comparison
Dec 31, 2024