Callaway Golf Company (MODG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,569,300 | 1,114,400 | 1,045,700 | 882,499 | 1,738,030 |
| Inventory | US$ in thousands | 757,300 | 794,400 | 959,200 | 533,500 | 352,544 |
| Inventory turnover | 3.39 | 1.40 | 1.09 | 1.65 | 4.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,569,300K ÷ $757,300K
= 3.39
The inventory turnover for Callaway Golf Company has fluctuated over the past five years. In 2020, the inventory turnover was 4.93, indicating that the company was able to turn over its inventory almost 5 times during that year. However, this ratio decreased significantly in 2021 to 1.65, suggesting a slower rate of inventory turnover.
The trend continued in the following years, with inventory turnover declining to 1.09 in 2022 before slightly improving to 1.40 in 2023. Notably, there was a substantial increase in inventory turnover to 3.39 in 2024, indicating a more efficient management of inventory during that year.
Overall, the decrease in inventory turnover from 2020 to 2022 may suggest potential challenges in inventory management, such as overstocking or slower sales. However, the improvement in 2024 could indicate that the company implemented strategies to enhance inventory efficiency. Monitoring inventory turnover is crucial for assessing how effectively a company is managing its inventory levels and optimizing its operations.
Peer comparison
Dec 31, 2024