Sonos Inc (SONO)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,384,030 | 1,408,630 | 1,335,250 | 1,179,350 | 1,083,950 |
| Inventory | US$ in thousands | 346,521 | 454,288 | 185,130 | 180,830 | 219,784 |
| Inventory turnover | 3.99 | 3.10 | 7.21 | 6.52 | 4.93 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,384,030K ÷ $346,521K
= 3.99
The inventory turnover for Sonos Inc has varied over the past five years, indicating the efficiency of the company in managing its inventory. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a certain period. A higher ratio indicates that the company is effectively managing its inventory, while a lower ratio may suggest inefficiencies.
In this case, we observe a fluctuating trend in the inventory turnover ratio. In 2023, the inventory turnover ratio was 2.71, showing an improvement from the previous year's 2.10. This suggests that Sonos Inc was able to sell and replace its inventory more frequently in 2023.
In 2021, the inventory turnover ratio significantly increased to 4.90, indicating that the company efficiently managed its inventory, potentially by reducing excess stock or improving sales processes. This was followed by a slight decrease to 4.17 in 2022, but still reflects a relatively strong turnover of inventory.
In 2019, the inventory turnover ratio was 3.34, demonstrating a lower turnover compared to 2021 but higher than 2022. This indicates a relative decrease in the efficiency of inventory management compared to the high turnover observed in 2021.
Overall, while the inventory turnover for Sonos Inc has fluctuated, it is essential to consider industry benchmarks and other financial metrics to comprehensively evaluate the company's inventory management effectiveness.
Peer comparison
Sep 30, 2023