Sally Beauty Holdings Inc (SBH)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,407,100 | 3,507,050 | 3,463,150 | 3,264,570 | 3,429,240 |
| Inventory | US$ in thousands | 975,218 | 936,374 | 871,349 | 814,503 | 952,907 |
| Inventory turnover | 3.49 | 3.75 | 3.97 | 4.01 | 3.60 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,407,100K ÷ $975,218K
= 3.49
Sally Beauty Holdings Inc's inventory turnover has seen a slight decrease over the past year, with the ratio dropping from 2.03 in 2022 to 1.88 in 2023. This implies that the company's inventory is turning over at a slower rate, indicating either higher inventory levels or lower cost of goods sold. While a lower inventory turnover may suggest potential issues with inventory management and liquidity, it is essential to consider the industry standards and company-specific factors before drawing definitive conclusions. Further analysis of the company's inventory levels and cost management may provide greater insights into the changes in the inventory turnover ratio.
Peer comparison
Sep 30, 2023