Sally Beauty Holdings Inc (SBH)

Inventory turnover

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 Dec 31, 2019
Cost of revenue (ttm) US$ in thousands 3,437,477 3,427,647 3,398,003 3,396,595 3,407,134 3,512,784 3,534,335 3,512,090 3,507,054 3,438,375 3,471,704 3,498,196 3,463,054 3,422,722 3,232,208 3,209,749 3,262,170 3,274,554 3,424,428 3,436,524
Inventory US$ in thousands 1,036,620 1,022,380 1,039,750 1,007,630 975,218 996,404 1,023,660 986,878 936,374 1,014,620 962,563 1,005,840 871,349 935,427 949,695 895,984 814,503 815,632 946,189 991,839
Inventory turnover 3.32 3.35 3.27 3.37 3.49 3.53 3.45 3.56 3.75 3.39 3.61 3.48 3.97 3.66 3.40 3.58 4.01 4.01 3.62 3.46

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,437,477K ÷ $1,036,620K
= 3.32

Sally Beauty Holdings Inc's inventory turnover ratio has been relatively stable over the past few quarters, ranging between 3.27 and 4.01 times. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times the company sells and replaces its inventory during a specific period.

A higher inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory quickly and efficiently. Sally Beauty Holdings Inc's inventory turnover ratios, ranging from 3.27 to 4.01 times, indicate that the company is effectively managing its inventory levels.

It's important to note that a consistent inventory turnover ratio can also indicate that Sally Beauty Holdings Inc has a good understanding of its customer demand and manages its inventory levels judiciously to avoid overstocking or stockouts. Analyzing inventory turnover ratios over multiple quarters provides insight into the company's inventory management practices and operational efficiency.


Peer comparison

Sep 30, 2024

Sep 30, 2024

Company name
Symbol
Inventory turnover
Sally Beauty Holdings Inc
SBH
3.32
IAC Inc.
IAC
Leslies Inc
LESL
5.51
Match Group Inc
MTCH
Ulta Beauty Inc
ULTA
4.02