Marriot Vacations Worldwide (VAC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,653,000 | 1,429,000 | 1,310,000 | 1,134,000 | 1,638,000 |
| Inventory | US$ in thousands | 634,000 | 660,000 | 719,000 | 759,000 | 82,000 |
| Inventory turnover | 2.61 | 2.17 | 1.82 | 1.49 | 19.98 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,653,000K ÷ $634,000K
= 2.61
Marriott Vacations Worldwide Corp's inventory turnover has been fluctuating over the past five years. The ratio has shown an increasing trend from 1.20 in 2020 to 1.76 in 2023, with a minor dip in 2022. This suggests that the company is managing its inventory more efficiently and selling its inventory more frequently in recent years. The improvements in inventory turnover indicate that the company is effectively minimizing excess inventory and optimizing its sales operations. However, it is essential to continue monitoring this ratio to ensure sustainable inventory management practices and operational efficiency in the future.