Somnigroup International Inc. (SGI)
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 | 2,724,000 | 2,717,300 | 2,765,300 | 2,796,700 | 2,837,200 | 2,876,000 | 2,863,100 | 2,871,600 | 2,928,500 | 2,967,500 | 2,903,900 | 2,772,100 | 2,588,800 | 2,409,700 | 2,158,100 | 2,038,500 | 1,951,600 | 1,809,900 | 1,820,000 | 1,763,800 |
| Inventory | US$ in thousands | 496,200 | 507,400 | 489,600 | 483,100 | 485,500 | 529,300 | 566,700 | 555,000 | 599,000 | 619,100 | 581,300 | 463,900 | 384,900 | 324,200 | 318,800 | 312,100 | 275,600 | 258,800 | 273,400 | 260,500 |
| Inventory turnover | 5.49 | 5.36 | 5.65 | 5.79 | 5.84 | 5.43 | 5.05 | 5.17 | 4.89 | 4.79 | 5.00 | 5.98 | 6.73 | 7.43 | 6.77 | 6.53 | 7.08 | 6.99 | 6.66 | 6.77 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,724,000K ÷ $496,200K
= 5.49
Somnigroup International Inc.'s inventory turnover, a key ratio that measures how efficiently the company manages its inventory, has shown fluctuations over the reported period.
From December 31, 2019, to June 30, 2021, the inventory turnover generally increased, reaching a peak of 7.43 on June 30, 2021. This indicates that the company was selling its inventory at a faster rate during this time, or managing its inventory more efficiently.
However, from December 31, 2021, to September 30, 2024, the inventory turnover ratio declined steadily. This decrease suggests that Somnigroup International Inc. may have been holding onto its inventory for longer periods, which could lead to potential issues such as obsolescence or storage costs.
It is important for the company to monitor its inventory turnover ratio regularly to ensure that it is maintaining an optimal balance between holding excessive inventory and running out of stock. Additionally, the management should investigate the reasons behind the decline in inventory turnover to address any inefficiencies in the inventory management process.
Peer comparison
Sep 30, 2024
Sep 30, 2024