Wingstop Inc (WING)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	170,244	132,656	122,611	119,868	100,800
Inventory	US$ in thousands	535	389	484	396	315
Inventory turnover		318.21	341.02	253.33	302.70	320.00

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $170,244K ÷ $535K
= 318.21

Wingstop Inc's inventory turnover has shown varying levels over the past five years. In 2023, the inventory turnover ratio was 318.21, indicating that the company converted its inventory into sales approximately 318 times during the year. This figure decreased from 2022 when it was 341.02, suggesting that Wingstop may have experienced a lower rate of inventory turnover in the most recent year. However, it is higher than the 2021 figure of 253.33, indicating an improvement in managing inventory levels. Comparing the 2023 ratio with 2020 and 2019, where the ratios were 302.70 and 320.00 respectively, it appears that Wingstop's inventory turnover has been relatively stable over the years, with fluctuations reflecting changes in operational efficiency and sales dynamics. Overall, the trend in Wingstop's inventory turnover suggests a generally healthy management of inventory levels to meet demand and drive sales efficiently.