Last Updated on January 8, 2008 by stlplace
More blindman’s check on elephant…
Crocs stock (CROX) had a big drop in last two sessions, amid the loss of patent lawsuit in EU, and some rumors on the business slowdown in general. When Crocs reported its Q3 2007 earning back on Oct 31 2007, it mentioned there is some excessive inventory because of the disruption of a new distribution center in Europe (and to less extent distribtution problem in Japan and China).
Here I am calculating its historic turn over ratio here (source: Crocs Q3 2006 10k, Q3 2007 10k). The ratio is defined as sales divide by inventory. The higher the ratio, the better for the company’s revenue growth.
First 9 months 2005: 75,022/28,494 = 2.63
First 9 months 2006: 241,824/49,128 = 4.92
Full year 2006: 354,728/86,210 = 4.11
First 9 months 2007: 622,554/195,256 = 3.19