Travel + Leisure Co (TNL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,822,000 | 1,692,000 | 1,611,000 | 1,282,000 | 1,462,000 |
| Inventory | US$ in thousands | 1,227,000 | 1,135,000 | 1,193,000 | 1,216,000 | 1,347,000 |
| Inventory turnover | 1.48 | 1.49 | 1.35 | 1.05 | 1.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,822,000K ÷ $1,227,000K
= 1.48
The inventory turnover ratio for Travel + Leisure Co has been fluctuating over the past five years. It stood at 1.09 at the end of December 31, 2020, decreased slightly to 1.05 by December 31, 2021, and then showed a significant improvement reaching 1.35 by December 31, 2022. The trend continued upwards with a further increase to 1.49 by December 31, 2023, and remained relatively stable at 1.48 by December 31, 2024.
Overall, the increasing trend in inventory turnover indicates that Travel + Leisure Co has been more efficient in managing its inventory levels and converting them into sales over the years. This could be a positive sign of effective inventory management practices, potentially leading to lower carrying costs and improved cash flow for the company. However, further analysis and comparison with industry benchmarks would provide more insights into the company's inventory performance and competitiveness in the market.
Peer comparison
Dec 31, 2024