Sonos Inc (SONO)
Inventory turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,267,342 | 1,279,834 | 1,296,408 | 1,333,822 | 1,389,058 | 1,430,736 | 1,405,229 | 1,448,407 | 1,408,629 | 1,403,713 | 1,407,777 | 1,347,169 | 1,332,466 | 1,310,281 | 1,278,570 | 1,193,098 | 1,179,339 | 1,164,807 | 1,120,967 | 1,135,286 |
| Inventory | US$ in thousands | 231,505 | 154,903 | 179,545 | 173,043 | 346,521 | 298,146 | 326,289 | 306,056 | 454,288 | 335,730 | 264,405 | 205,162 | 185,130 | 146,697 | 139,581 | 88,194 | 180,830 | 88,441 | 112,476 | 113,117 |
| Inventory turnover | 5.47 | 8.26 | 7.22 | 7.71 | 4.01 | 4.80 | 4.31 | 4.73 | 3.10 | 4.18 | 5.32 | 6.57 | 7.20 | 8.93 | 9.16 | 13.53 | 6.52 | 13.17 | 9.97 | 10.04 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,267,342K ÷ $231,505K
= 5.47
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by gauging the number of times its inventory is sold and replaced over a specific period. Higher inventory turnover ratios generally indicate a more efficient inventory management system.
Analyzing Sonos Inc's inventory turnover over the past several quarters, we observe fluctuations in the ratio. The inventory turnover ratio has shown a general upward trend over the most recent fiscal years, indicating an improvement in the efficiency of managing inventory.
In particular, the inventory turnover ratio has steadily increased from 4.01 in Q3 2023 to 8.26 in Q2 2024, highlighting a significant improvement in inventory management efficiency during this period. However, it is important to note that there was a slight decline in the ratio in the most recent quarter (Q4 2024) to 5.47, which suggests a potential slowdown in inventory turnover efficiency.
Overall, Sonos Inc has demonstrated an ability to efficiently manage its inventory, as indicated by generally healthy inventory turnover ratios over the past several quarters. Maintaining a balance between inventory levels and sales volume will be crucial for sustaining and further improving this efficiency in the future.
Peer comparison
Sep 30, 2024
Sep 30, 2024