EchoStar Corporation (SATS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,135,600 | 11,945,300 | 862,073 | 783,654 | 744,378 |
| Inventory | US$ in thousands | 455,197 | 665,169 | 123,606 | 103,084 | 97,992 |
| Inventory turnover | 22.27 | 17.96 | 6.97 | 7.60 | 7.60 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,135,600K ÷ $455,197K
= 22.27
To analyze EchoStar Corporation's inventory turnover, we look at the data provided:
- December 31, 2020: 7.60
- December 31, 2021: 7.60
- December 31, 2022: 6.97
- December 31, 2023: 17.96
- December 31, 2024: 22.27
The inventory turnover ratio measures how efficiently a company manages its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as positive.
In this case, EchoStar Corporation's inventory turnover has shown some variation over the years. The ratio remained relatively stable around 7.60 for the years 2020 and 2021. However, there was a noticeable decrease to 6.97 in 2022, indicating a slower inventory turnover during that period.
The significant increase in inventory turnover to 17.96 in 2023 and further to 22.27 in 2024 suggests a substantial improvement in the efficiency of inventory management. A higher turnover ratio could imply that EchoStar Corporation is selling its products at a faster rate and not holding onto excess inventory, which can lead to cost savings and improved cash flow.
However, it is essential to consider the industry and operational context to fully understand the implications of these inventory turnover ratios. Overall, the recent trend of increasing inventory turnover for EchoStar Corporation could be a positive indicator of improved inventory management efficiency.
Peer comparison
Dec 31, 2024