Leslies Inc (LESL)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,259,017 | 1,270,849 | 1,268,856 | 1,274,867 | 1,365,354 | 1,341,296 | 1,290,048 | 1,218,662 | 1,178,133 | 1,148,974 | |||
| Inventory | US$ in thousands | 334,031 | 311,837 | 436,557 | 492,328 | 429,517 | 361,686 | 361,391 | 345,046 | 244,632 | 198,789 | 224,526 | 277,860 | 174,535 |
| Inventory turnover | 3.77 | 4.08 | 2.91 | 2.59 | 3.18 | 3.71 | 3.57 | 3.53 | 4.82 | 5.78 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,259,017K ÷ $334,031K
= 3.77
Leslies Inc's inventory turnover ratio has shown fluctuations over the past few quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times a company sells and replaces its inventory during a specific period.
Based on the data provided, we observe that the inventory turnover ratio ranged from a low of 2.59 in March 2023 to a high of 5.78 in September 2021. A higher inventory turnover ratio typically indicates that a company is selling goods quickly and efficiently. Conversely, a lower ratio suggests slower inventory turnover and potentially obsolete or overstocked inventory.
During the latest period, the inventory turnover ratio stood at 3.77, which indicates that inventory was turned over approximately 3.77 times during the period. Although this ratio improved from the previous quarter, it is essential to monitor whether this improvement is sustainable and reflects effective inventory management.
Overall, Leslies Inc should assess the reasons behind the fluctuations in its inventory turnover ratio to optimize inventory levels, minimize carrying costs, and enhance operational efficiency in the future. Periodic review and adjustment of inventory management strategies may help improve the company's financial performance and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023