Amkor Technology Inc (AMKR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,897,780	6,068,240	5,225,240	4,477,200	3,403,210
Inventory	US$ in thousands	393,128	629,576	484,959	297,293	220,602
Inventory turnover		15.00	9.64	10.77	15.06	15.43

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,897,780K ÷ $393,128K
= 15.00

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory levels. It is calculated by dividing the cost of goods sold by the average inventory balance. A higher inventory turnover ratio generally indicates that a company is selling its inventory quickly and efficiently.

Analyzing AMKOR Technology Inc.'s inventory turnover over the past five years, we observe fluctuations in the ratio. In 2023, the inventory turnover ratio was 14.14, a significant improvement from the previous year, where it was 9.15. This indicates that in 2023, AMKOR was able to sell its inventory at a much faster rate compared to 2022.

Looking further back, in 2021, the inventory turnover ratio was 10.13, slightly lower than in 2020 at 13.96. However, in both years, the company demonstrated efficient management of its inventory levels. The highest inventory turnover ratio among the years analyzed was in 2019, at 15.43, suggesting that AMKOR was exceptionally effective in selling its inventory that year.

Overall, AMKOR Technology Inc. has shown variations in its inventory turnover ratio over the past five years, with fluctuations possibly influenced by factors such as sales volume, market demand, and inventory management strategies. A trend of increasing inventory turnover ratios generally reflects positively on the company's operational efficiency and could signify effective inventory management practices.