Somnigroup International Inc. (SGI)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,750,800 | 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 |
| Inventory | US$ in thousands | 447,000 | 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 |
| Inventory turnover | 6.15 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,750,800K ÷ $447,000K
= 6.15
Somnigroup International Inc.'s inventory turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by calculating how many times the inventory is sold and replaced over a specific period.
The inventory turnover ratio for Somnigroup International Inc. started at 6.66 on March 31, 2020, increased gradually to a peak of 7.43 on June 30, 2021, and then fluctuated before decreasing to 6.15 on December 31, 2024. A higher inventory turnover ratio generally indicates that the company is selling its products quickly and efficiently managing its inventory levels.
However, the decreasing trend from June 30, 2021, to December 31, 2024, may raise concerns about potential issues such as overstocking, obsolescence, or slowing sales. It is essential for the company to monitor its inventory turnover ratio closely to ensure optimal inventory management and avoid tying up capital in excess inventory.
Overall, while Somnigroup International Inc. has experienced fluctuations in its inventory turnover ratio, further analysis and comparison with industry benchmarks are necessary to assess the effectiveness of its inventory management practices and make informed strategic decisions.
Peer comparison
Dec 31, 2024
Dec 31, 2024