Marriot Vacations Worldwide (VAC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,112,000 | 2,909,000 | 2,683,000 | 2,437,000 | 2,157,000 |
| Inventory | US$ in thousands | 735,000 | 634,000 | 660,000 | 719,000 | 759,000 |
| Inventory turnover | 4.23 | 4.59 | 4.07 | 3.39 | 2.84 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,112,000K ÷ $735,000K
= 4.23
Marriot Vacations Worldwide's inventory turnover has shown a positive trend over the years, increasing from 2.84 in December 31, 2020, to 3.39 in December 31, 2021, and further to 4.07 in December 31, 2022. This indicates that the company is effectively managing its inventory levels and turning over its inventory at a faster pace.
The significant increase in inventory turnover to 4.59 in December 31, 2023, suggests improved efficiency in managing inventory and converting it into sales. However, there was a slight decrease to 4.23 in December 31, 2024, which could be due to various factors such as changes in consumer demand or supply chain disruptions.
Overall, the increasing trend in inventory turnover indicates that Marriot Vacations Worldwide is effectively managing its inventory and optimizing its operations to meet customer demand efficiently. This could lead to improved profitability and operational performance for the company in the future.