Viad Corp (VVI)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,424	5,021	5,896	7,127	7,323	7,939	8,771	8,155	10,346	10,100	19,006	18,334	31,889	32,354	22,571	25,702	8,939	7,992	5,730	1,701
Inventory	US$ in thousands	10,153	10,697	15,844	11,703	10,785	11,212	14,940	9,191	8,581	8,751	11,424	8,406	8,727	16,296	19,101	17,528	17,269	16,323	21,304	17,601
Inventory turnover		0.53	0.47	0.37	0.61	0.68	0.71	0.59	0.89	1.21	1.15	1.66	2.18	3.65	1.99	1.18	1.47	0.52	0.49	0.27	0.10

December 31, 2023 calculation

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

The inventory turnover ratio for Viad Corp. has shown variability over the past eight quarters, ranging from a low of 58.47 in the second quarter of 2022 to a high of 111.31 in the fourth quarter of 2023. This ratio indicates how efficiently the company is managing its inventory by measuring how many times it sells and replaces its inventory during a specific time period.

A high inventory turnover ratio suggests that the company is selling its inventory quickly and efficiently, which may be a sign of strong sales and effective inventory management. On the other hand, a low inventory turnover ratio may indicate overstocking or slow-moving inventory, leading to potential liquidity issues or obsolescence risks.

Viad Corp. experienced a notable increase in inventory turnover in the most recent quarter, reaching 111.31, which may signify improved inventory management practices or increased demand for its products/services. However, it's crucial for the company to assess the reasons behind such fluctuations and ensure that inventory turnover remains at a sustainable level to support its operations and financial health in the long term.