Callaway Golf Company (MODG)
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 | 1,116,300 | 1,116,100 | 1,106,100 | 1,077,500 | 1,050,600 | 1,027,817 | 1,007,498 | 969,556 | 877,349 | 1,099,847 | 1,275,683 | 1,510,916 | 1,737,859 | 1,675,538 | 1,646,424 | 1,570,306 | 1,616,013 | 1,483,697 | 1,352,386 | 1,274,263 |
| Inventory | US$ in thousands | 794,400 | 736,500 | 839,800 | 929,800 | 959,200 | 722,300 | 604,000 | 552,400 | 533,500 | 385,311 | 335,346 | 336,314 | 352,544 | 324,852 | 379,169 | 412,690 | 456,639 | 340,314 | 360,467 | 382,298 |
| Inventory turnover | 1.41 | 1.52 | 1.32 | 1.16 | 1.10 | 1.42 | 1.67 | 1.76 | 1.64 | 2.85 | 3.80 | 4.49 | 4.93 | 5.16 | 4.34 | 3.81 | 3.54 | 4.36 | 3.75 | 3.33 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,116,300K ÷ $794,400K
= 1.41
Based on the data provided for Topgolf Callaway Brands Corp, the inventory turnover ratio has fluctuated over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced within a given period.
In Q2 2022 and Q1 2022, the inventory turnover ratios were relatively high at 2.47 and 2.53, respectively, indicating that the company was able to sell and replace its inventory quickly during those periods. This could suggest strong sales or effective inventory management practices during that time.
However, in the subsequent quarters, the inventory turnover ratio decreased, reaching its lowest point of 1.65 in Q4 2022. This suggests that the company may have had excess inventory on hand or experienced slower sales during that period, leading to a longer inventory turnover cycle.
In the most recent quarter, Q4 2023, the inventory turnover ratio improved slightly to 2.05, indicating a better performance in managing and turning over inventory compared to the previous quarters. It is important for the company to continue monitoring and improving its inventory turnover to ensure efficient operations and optimal use of resources.
Peer comparison
Dec 31, 2023
Dec 31, 2023