Skyline Corporation (SKY)
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 | 2,235,115 | 2,166,172 | 2,029,374 | 1,862,618 | 1,756,689 | 1,733,668 | 1,936,701 | 2,098,894 | 2,197,271 | 2,159,394 | 1,998,098 | 1,881,948 | 1,760,414 | 1,621,035 | 1,465,143 | 1,272,015 | 1,161,736 | 1,175,914 | 1,203,773 | 1,291,253 |
| Inventory | US$ in thousands | 336,766 | 325,534 | 319,958 | 318,737 | 290,542 | 182,239 | 196,510 | 202,238 | 220,941 | 240,451 | 292,158 | 241,334 | 185,052 | 179,976 | 191,596 | 166,113 | 131,123 | 128,016 | 115,815 | 126,386 |
| Inventory turnover | 6.64 | 6.65 | 6.34 | 5.84 | 6.05 | 9.51 | 9.86 | 10.38 | 9.95 | 8.98 | 6.84 | 7.80 | 9.51 | 9.01 | 7.65 | 7.66 | 8.86 | 9.19 | 10.39 | 10.22 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,235,115K ÷ $336,766K
= 6.64
Inventory turnover is a key financial ratio that indicates how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a certain period.
Analyzing the inventory turnover of Skyline Corporation based on the provided data reveals fluctuations in the ratio over the reporting periods.
From March 31, 2020, to June 30, 2021, Skyline Corporation's inventory turnover remained relatively stable in the range of 7.65 to 10.39, indicating that the company was efficiently managing its inventory during this period.
However, from March 31, 2022, to December 31, 2024, there were significant fluctuations in the inventory turnover ratio, showing a decline from 7.80 to 6.64. This decline could suggest potential issues in inventory management, such as overstocking, slowing sales, or obsolete inventory.
It is important for Skyline Corporation to closely monitor its inventory turnover to ensure optimal inventory levels, minimize carrying costs, and avoid stockouts. Periodic review and adjustment of inventory levels based on demand fluctuations and market conditions will be crucial for maintaining a healthy balance between inventory efficiency and profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024