Wingstop Inc (WING)

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	186,242	173,415	165,156	155,234	132,656	130,065	127,881	129,306	122,611	126,279	125,139	121,447	119,868	111,848	106,628	104,014	100,800	94,569	89,028	82,884
Inventory	US$ in thousands	535	37,002	33,388	40,006	389	—	—	—	484	28,469	26,218	26,981	396	23,047	11,992	15,302	315	13,312	7,299	14,231
Inventory turnover		348.12	4.69	4.95	3.88	341.02	—	—	—	253.33	4.44	4.77	4.50	302.70	4.85	8.89	6.80	320.00	7.10	12.20	5.82

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $186,242K ÷ $535K
= 348.12

Inventory turnover provides insight into how efficiently a company manages its inventory by measuring the number of times inventory is sold and replaced within a specific period. Wingstop Inc's inventory turnover has exhibited fluctuations over the past several quarters.

In the most recent period, as of December 31, 2023, the inventory turnover ratio was exceptionally high at 348.12. This indicates that Wingstop's inventory turned over 348.12 times during the year, which suggests efficient management of inventory levels.

Looking back further, in September 2023, the inventory turnover ratio was 4.69, showing that inventory turnover was relatively slower compared to the most recent period. The trend continued with minor variations in June 2023 (4.95) and March 2023 (3.88).

A significant spike was observed in December 2022 when the inventory turnover ratio reached 341.02, indicating a substantial improvement in managing inventory during that period.

The data from 2021 also shows fluctuations, with inventory turnover peaking at 8.89 in June 2021 and dropping to 4.44 in September 2021. Overall, Wingstop Inc's inventory turnover ratios have varied, suggesting changes in inventory management effectiveness over the analyzed periods.