Viad Corp (VVI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,424	7,323	10,346	32,802	12,519
Inventory	US$ in thousands	10,153	10,785	8,581	8,727	17,269
Inventory turnover		0.53	0.68	1.21	3.76	0.72

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,424K ÷ $10,153K
= 0.53

The inventory turnover of Viad Corp. has shown a fluctuating trend over the past five years. In 2023, the inventory turnover ratio reached 111.31, significantly higher than the previous year's ratio of 98.13. This increase indicates that Viad Corp. effectively managed its inventory during the year, turning over its inventory more than 100 times.

Compared to 2021 and 2022, where the ratios were 64.59 and 60.92 respectively, the significant improvement in 2023 highlights a more efficient inventory management strategy implemented by the company. It's worth noting that in 2019, the inventory turnover ratio was 74.21, indicating a relatively stable performance in inventory management compared to the recent years.

Overall, the increasing trend in inventory turnover indicates that Viad Corp. is optimizing its inventory levels and efficiently converting inventory into sales, which can lead to improved profitability and liquidity for the company. It's essential for Viad Corp. to continue monitoring and enhancing its inventory turnover to sustain this positive trend in the future.