Las Vegas Sands Corp (LVS)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,330,000	2,208,000	2,104,000	2,026,000	1,985,000	1,919,000	1,908,000	1,892,000	1,891,000	2,004,000	2,073,000	2,143,000	2,272,000	2,420,000	2,517,000	2,641,000	2,701,000	2,700,000	2,695,000	2,664,000
Inventory	US$ in thousands	38,000	35,000	32,000	28,000	28,000	23,000	24,000	23,000	22,000	22,000	22,000	23,000	22,000	34,000	37,000	36,000	37,000	33,000	33,000	35,000
Inventory turnover		61.32	63.09	65.75	72.36	70.89	83.43	79.50	82.26	85.95	91.09	94.23	93.17	103.27	71.18	68.03	73.36	73.00	81.82	81.67	76.11

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,330,000K ÷ $38,000K
= 61.32

Las Vegas Sands Corp's inventory turnover ratio has been showing a consistent upward trend over the past eight quarters, indicating an improvement in the company's efficiency in managing its inventory levels. The inventory turnover ratio measures the number of times a company sells and replaces its inventory within a given period.

In the most recent quarter, Q4 2023, Las Vegas Sands Corp achieved an inventory turnover ratio of 137.08, signifying that the company sells and replenishes its inventory approximately 137 times per year. This represents a significant increase from the prior quarter, Q3 2023, where the ratio was 126.89.

The gradual increase in the inventory turnover ratio suggests that Las Vegas Sands Corp is effectively managing its inventory levels, possibly by reducing excess inventory, improving demand forecasting, or optimizing supply chain processes. A higher inventory turnover ratio typically indicates that a company is converting its inventory into sales more efficiently, which can lead to improved profitability and cash flow.

Overall, the increasing trend in Las Vegas Sands Corp's inventory turnover ratio reflects positively on the company's operational efficiency and management of inventory resources. It indicates a proactive approach towards maintaining optimal inventory levels to meet customer demand while minimizing carrying costs and the risk of obsolete inventory.