Somnigroup International Inc. (SGI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,750,800 | 2,796,700 | 2,871,600 | 2,772,100 | 2,038,500 |
| Inventory | US$ in thousands | 447,000 | 483,100 | 555,000 | 463,900 | 312,100 |
| Inventory turnover | 6.15 | 5.79 | 5.17 | 5.98 | 6.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,750,800K ÷ $447,000K
= 6.15
The inventory turnover ratio for Somnigroup International Inc. has shown a somewhat fluctuating trend over the years analyzed. It decreased from 6.53 in December 31, 2020, to 5.98 in December 31, 2021, indicating that the company took slightly longer to sell its inventory in 2021 compared to 2020. Subsequently, the ratio further declined to 5.17 by December 31, 2022, suggesting a potential inefficiency in managing and selling inventory.
However, there was a slight improvement in inventory turnover in the following year, with the ratio increasing to 5.79 by December 31, 2023, signifying a more efficient utilization of inventory. Finally, by December 31, 2024, the inventory turnover ratio further improved to 6.15, indicating that the company was able to sell its inventory more quickly relative to the previous years.
Overall, the trend in inventory turnover for Somnigroup International Inc. suggests a mix of challenges and improvements in managing inventory levels and sales efficiency over the five-year period. The company may need to continue monitoring and optimizing its inventory management practices to ensure optimal performance.
Peer comparison
Dec 31, 2024