EchoStar Corporation (SATS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,002,300 | 914,002 | 953,467 | 1,031,810 | 1,036,610 |
| Inventory | US$ in thousands | 665,169 | 625,979 | 103,084 | 97,992 | 79,621 |
| Inventory turnover | 24.06 | 1.46 | 9.25 | 10.53 | 13.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,002,300K ÷ $665,169K
= 24.06
The inventory turnover for EchoStar Corporation has fluctuated significantly over the past five years. In 2023, the inventory turnover ratio was 24.06, which indicates a substantial improvement compared to the previous year. This high ratio suggests that the company effectively managed its inventory by selling it quickly during the year.
In contrast, the inventory turnover ratio was notably low in 2022 at 1.46, indicating that the company took a longer time to sell off its inventory that year. However, in the preceding years from 2021 to 2019, EchoStar's inventory turnover ratios were generally higher, ranging from 9.25 to 13.02, which reflects better inventory management practices during those periods.
Overall, EchoStar's inventory turnover has shown variability over the years, with the most recent ratio indicating a significant improvement in inventory management efficiency. It is essential for the company to continue monitoring and optimizing its inventory turnover to ensure effective management of its inventory levels and maximize profitability.
Peer comparison
Dec 31, 2023