Molson Coors Brewing Co Class B (TAP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,785,800 | 11,157,800 | 9,565,000 | 7,955,500 | 8,807,900 |
| Inventory | US$ in thousands | 802,300 | 792,900 | 804,700 | 664,300 | 615,900 |
| Inventory turnover | 13.44 | 14.07 | 11.89 | 11.98 | 14.30 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,785,800K ÷ $802,300K
= 13.44
Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory balance. Molson Coors Beverage Company's inventory turnover has shown fluctuations over the past five years, with values of 9.14 in 2023, 8.89 in 2022, 7.74 in 2021, 8.86 in 2020, and 10.36 in 2019.
A higher inventory turnover ratio generally implies that a company is selling its products more quickly, which is positive as it reduces the risk of inventory obsolescence and holding costs. However, a very high ratio may also indicate stockouts or lost sales. On the other hand, a lower ratio could suggest overstocking or slow-moving inventory, potentially tying up working capital and leading to higher holding costs.
In the case of Molson Coors Beverage Company, the inventory turnover has varied, with a notable decrease in 2021 followed by a recovery in 2022 and 2023. This could indicate changes in production levels, demand patterns, or inventory management practices within the company. Further analysis and comparison with industry benchmarks would provide additional insights into the company's inventory efficiency and operational performance.
Peer comparison
Dec 31, 2023