Sonos Inc (SONO)
Inventory turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,083,948 |
| Inventory | US$ in thousands | 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 | 219,784 |
| Inventory turnover | 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 | 4.93 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,279,834K ÷ $154,903K
= 8.26
Inventory turnover measures how efficiently a company is managing its inventory. A higher inventory turnover ratio indicates that the company is selling its products quickly and not holding onto excess inventory.
Analyzing Sonos Inc's inventory turnover over the past few quarters, we see fluctuations in the ratio. In the most recent quarter, the inventory turnover ratio stood at 8.26, indicating that Sonos was able to sell and replace its inventory 8.26 times during the period. This shows an improvement compared to the previous quarter but not as high as some previous quarters.
Looking back further, there have been variations in the inventory turnover ratio, with some quarters showing higher turnover and some lower. The trend seems to suggest that Sonos has experienced periods of both efficient and less efficient inventory management.
It is essential for Sonos to monitor its inventory turnover consistently to ensure it is optimizing inventory levels and not tying up capital in excess inventory. By maintaining a healthy balance between demand and supply, Sonos can improve profitability and cash flow management.
Peer comparison
Jun 30, 2024
Jun 30, 2024