Marriot Vacations Worldwide (VAC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,862,000 | 2,956,000 | 2,962,000 | 2,717,000 | 2,453,000 | 2,196,000 | 2,784,000 | 2,732,000 | 2,666,000 | 2,646,000 | 2,578,000 | 2,529,000 | 2,437,000 | 2,336,000 | 2,202,000 | 2,019,000 | 2,157,000 | 2,282,000 | 2,481,000 | 2,684,000 |
| Inventory | US$ in thousands | 735,000 | 769,000 | 643,000 | 637,000 | 634,000 | 642,000 | 660,000 | 672,000 | 660,000 | 668,000 | 695,000 | 693,000 | 719,000 | 741,000 | 833,000 | 785,000 | 759,000 | 761,000 | 771,000 | 776,000 |
| Inventory turnover | 3.89 | 3.84 | 4.61 | 4.27 | 3.87 | 3.42 | 4.22 | 4.07 | 4.04 | 3.96 | 3.71 | 3.65 | 3.39 | 3.15 | 2.64 | 2.57 | 2.84 | 3.00 | 3.22 | 3.46 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,862,000K ÷ $735,000K
= 3.89
Marriot Vacations Worldwide's inventory turnover has shown some fluctuations over the reporting periods provided. Inventory turnover measures how efficiently the company is managing its inventory by calculating the number of times the inventory is sold and replaced over a certain period.
From March 2020 to June 2020, the inventory turnover decreased from 3.46 to 3.22, indicating a slight decrease in the efficiency of inventory management. This trend continued, with inventory turnover dropping to 2.57 by March 2021, reaching its lowest point in the data set.
However, from March 2021 onwards, there was a gradual improvement in inventory turnover, with the ratio increasing consistently. By June 2024, the inventory turnover had significantly improved to 4.61, indicating that Marriot Vacations Worldwide was selling and replacing its inventory over four times a year.
The peak in inventory turnover was observed in March 2024 at 4.27, suggesting that the company had made significant strides in optimizing its inventory management processes.
Overall, the trend in inventory turnover for Marriot Vacations Worldwide shows a recovery from lower efficiency levels to improved performance in managing its inventory effectively as the ratio increased steadily over the years.