Travel + Leisure Co (TNL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,692,000 | 1,611,000 | 1,282,000 | 1,462,000 | 186,000 |
| Inventory | US$ in thousands | 1,135,000 | 1,193,000 | 1,216,000 | 1,347,000 | 1,199,000 |
| Inventory turnover | 1.49 | 1.35 | 1.05 | 1.09 | 0.16 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,692,000K ÷ $1,135,000K
= 1.49
The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period. In the case of Travel+Leisure Co, the inventory turnover ratio has fluctuated over the past five years.
In 2023, the inventory turnover ratio decreased to 0.12 from 0.13 in 2022. This suggests that the company took longer to sell and replenish its inventory in 2023 compared to the previous year. A lower inventory turnover ratio may indicate overstocking, slow sales, or inefficiencies in inventory management.
In 2022 and 2021, the inventory turnover ratio remained relatively stable at 0.13. This indicates that the company was able to maintain a consistent rate of inventory turnover during these two years. A stable inventory turnover ratio could suggest effective inventory management practices.
In 2020, the inventory turnover ratio dropped to 0.00, which may indicate significant issues with inventory management, such as stagnant inventory or difficulties in selling products. A zero inventory turnover ratio is concerning as it implies that the company did not sell any inventory during that period.
In 2019, the inventory turnover ratio improved to 0.16, indicating a higher rate of inventory turnover compared to the other years. A higher inventory turnover ratio suggests that the company is efficiently managing its inventory by quickly selling and replenishing stock.
Overall, the trend in Travel+Leisure Co's inventory turnover ratio shows fluctuations over the past five years, with some periods of stability and others indicating potential challenges in inventory management. Continued monitoring and improvement in inventory turnover efficiency may be necessary to enhance overall operational performance and profitability.
Peer comparison
Dec 31, 2023