Wingstop Inc (WING)

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 211,733 204,345 188,353 176,353 170,244 157,417 149,158 139,236 132,656 130,065 127,881 129,306 122,611 126,279 125,139 121,447 119,868 111,848 106,628 104,014
Inventory US$ in thousands — — — 45,154 535 37,002 33,388 40,006 389 — 30,793 — 484 28,469 26,218 26,981 396 23,047 11,992 15,302
Inventory turnover — — — 3.91 318.21 4.25 4.47 3.48 341.02 — 4.15 — 253.33 4.44 4.77 4.50 302.70 4.85 8.89 6.80

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $211,733K ÷ $—K
= —

Inventory turnover measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory during a specific period. For Wingstop Inc, we observe fluctuating inventory turnover ratios over the quarters, indicating changes in the company's inventory management practices.

In general, Wingstop's inventory turnover ratio ranged from a low of 3.48 to a high of 341.02 during the period from March 31, 2020, to December 31, 2024. It is important to note that significant fluctuations are seen, with some quarters showing exceptionally high or low turnover ratios, such as 302.70 on December 31, 2020, and 341.02 on December 31, 2022.

A high inventory turnover ratio, such as the ones observed in Wingstop's case for certain quarters, indicates that the company is selling and replenishing its inventory quickly, which can be a sign of efficient inventory management. Conversely, low turnover ratios may suggest excess inventory levels or slow-moving inventory, which could tie up working capital and lead to higher storage costs.

Analyzing the trend in Wingstop's inventory turnover ratios can provide insights into the company's sales patterns, inventory control mechanisms, and potentially highlight areas where improvements in inventory management may be needed. Further analysis and comparison with industry benchmarks or historical data can help assess the impact of inventory management on Wingstop's overall operational efficiency and profitability.