Callaway Golf Company (MODG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,172,300 | 1,099,500 | 1,094,300 | 1,115,800 | 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 |
| Inventory | US$ in thousands | 757,300 | 666,400 | 647,100 | 702,900 | 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 |
| Inventory turnover | 2.87 | 1.65 | 1.69 | 1.59 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,172,300K ÷ $757,300K
= 2.87
The inventory turnover ratio for Callaway Golf Company has shown a fluctuating trend over the specified periods. Starting at 3.81 on March 31, 2020, the ratio increased steadily, reaching a peak of 5.16 on September 30, 2020. This indicates that the company was efficiently managing its inventory levels and turning over its stock more frequently during this time.
However, from December 31, 2020, to June 30, 2021, the inventory turnover ratio started to decline, suggesting potential inventory management challenges or changes in sales patterns. The ratio dropped to 1.64 on December 31, 2021, signaling a significant decrease in inventory turnover efficiency.
Subsequently, there were fluctuations in the inventory turnover ratio in the following periods, with varying levels of efficiency in managing inventory turnover. Notably, the ratio reached a low of 1.10 on December 31, 2022, indicating a prolonged period of slower inventory turnover.
Overall, the trend in Callaway Golf Company's inventory turnover suggests that the company may have experienced challenges in efficiently managing its inventory levels in certain periods, impacting its working capital management and operational efficiency. Further analysis and investigation into the underlying factors influencing these fluctuations would be necessary to determine the root causes and potential strategies for improvement.
Peer comparison
Dec 31, 2024
Dec 31, 2024