Sonos Inc (SONO)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,267,250 | 1,384,030 | 1,408,630 | 1,335,250 | 1,179,350 |
| Inventory | US$ in thousands | 231,505 | 346,521 | 454,288 | 185,130 | 180,830 |
| Inventory turnover | 5.47 | 3.99 | 3.10 | 7.21 | 6.52 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,267,250K ÷ $231,505K
= 5.47
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory over a specific period.
Based on the data provided for Sonos Inc over the last five years, we observe the following trends in the inventory turnover ratio:
1. In 2024, the inventory turnover ratio improved to 5.47 from 3.99 in 2023, indicating that Sonos Inc was more efficient in managing its inventory.
2. The ratio was higher in 2021 at 7.21, signifying that Sonos Inc sold and replaced its inventory more frequently that year compared to the other years listed.
3. In 2022, the inventory turnover ratio decreased to 3.10, indicating a potential inefficiency in managing inventory during that year.
4. Overall, the trend shows fluctuations in the inventory turnover ratio, suggesting varying levels of efficiency in managing inventory over the years.
It is essential for Sonos Inc to analyze the reasons behind these fluctuations in the inventory turnover ratio to optimize inventory levels, improve cash flow, and enhance operational efficiency.
Peer comparison
Sep 30, 2024