Skechers USA Inc (SKX)
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 | 7,307,380 | 7,261,520 | 7,198,140 | 7,117,010 | 6,977,440 | 6,743,500 | 6,407,330 | 6,154,340 | 5,783,930 | 5,491,700 | 5,291,450 | 4,623,829 | 4,556,369 | 4,519,459 | 4,520,349 | 4,881,130 | 4,782,300 | 4,538,220 | 4,382,690 | 4,287,660 |
| Inventory | US$ in thousands | 1,525,410 | 1,382,030 | 1,486,010 | 1,502,250 | 1,818,020 | 1,779,370 | 1,563,910 | 1,449,510 | 1,470,990 | 1,230,350 | 1,057,280 | 1,067,440 | 1,016,770 | 1,053,360 | 1,027,740 | 985,659 | 1,069,860 | 890,409 | 855,627 | 740,869 |
| Inventory turnover | 4.79 | 5.25 | 4.84 | 4.74 | 3.84 | 3.79 | 4.10 | 4.25 | 3.93 | 4.46 | 5.00 | 4.33 | 4.48 | 4.29 | 4.40 | 4.95 | 4.47 | 5.10 | 5.12 | 5.79 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,307,380K ÷ $1,525,410K
= 4.79
Skechers U S A, Inc.'s inventory turnover has shown a generally increasing trend over the past two years, indicating improvements in managing its inventory levels efficiently. The quarterly inventory turnover ratios have ranged from 2.14 to 2.82, with Q3 2023 showing the highest turnover rate at 2.82 and Q4 2023 at 2.52.
A rising inventory turnover ratio suggests that Skechers is selling its products more quickly, which can be a positive indicator of operational efficiency. However, the company experienced a slight dip in Q4 2023 compared to the previous quarter. Nevertheless, the overall trend is positive.
Skechers' ability to turn over its inventory efficiently is crucial for optimizing its working capital and maintaining healthy cash flow. The company's management should continue to monitor and improve inventory management practices to sustain and potentially enhance the inventory turnover ratio further.
Peer comparison
Dec 31, 2023
Dec 31, 2023