Sally Beauty Holdings Inc (SBH)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 3,430,418 | 3,431,770 | 3,473,095 |
| Inventory | US$ in thousands | 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 | 952,907 | 967,744 | 953,043 |
| Inventory turnover | 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 | 3.60 | 3.55 | 3.64 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,396,595K ÷ $1,007,630K
= 3.37
Sally Beauty Holdings Inc's inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times, on average, the inventory is sold and replaced during a specific period.
In Q1 2024, the inventory turnover was 1.81, indicating that the company sold and replaced its inventory approximately 1.81 times during that quarter. This ratio decreased slightly from the previous quarter's value of 1.88. The trend in inventory turnover has been relatively stable between 1.85 to 2.03 over the past two years, demonstrating consistent inventory management practices.
A higher inventory turnover ratio typically indicates better inventory management efficiency, as products are being sold and restocked quickly. However, it is crucial to consider the industry norms and compare the company's ratio with its competitors to gain a better understanding of its inventory management performance. Overall, Sally Beauty Holdings Inc's inventory turnover ratio indicates a moderate level of efficiency in managing its inventory over the analyzed period.
Peer comparison
Dec 31, 2023
Dec 31, 2023