Skechers USA Inc (SKX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,397,480 | 7,051,600 | 5,851,580 | 4,622,560 | 4,835,620 |
| Inventory | US$ in thousands | 1,525,410 | 1,818,020 | 1,470,990 | 1,016,770 | 1,069,860 |
| Inventory turnover | 4.85 | 3.88 | 3.98 | 4.55 | 4.52 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,397,480K ÷ $1,525,410K
= 4.85
Skechers U S A, Inc.'s inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced during a specific period.
In 2023, the inventory turnover ratio of 2.52 is higher compared to the previous year, suggesting that Skechers U S A, Inc. was able to sell and replace its inventory more frequently during the year. This might indicate improved inventory management efficiency or a better alignment of production with consumer demand.
In 2022 and 2021, the inventory turnover ratios were relatively stable at 2.16 and 2.17, respectively, indicating a consistent performance in managing inventory turnover. However, the ratios were slightly lower than in 2023, suggesting that the company may have had slightly slower inventory turnover during those years.
In 2020 and 2019, the inventory turnover ratios were 2.37 and 2.55, respectively. Both ratios were higher compared to the more recent years, indicating that Skechers U S A, Inc. had a higher rate of inventory turnover during those periods. This could imply that the company was more efficient in managing inventory levels in the earlier years, possibly due to better inventory control processes or demand forecasting accuracy.
Overall, fluctuations in inventory turnover ratios suggest varying levels of efficiency in managing inventory for Skechers U S A, Inc. It is important for the company to analyze the reasons behind these fluctuations to further enhance inventory management practices and ensure optimal utilization of resources.
Peer comparison
Dec 31, 2023