Amkor Technology Inc (AMKR)

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	5,384,480	5,474,770	5,424,710	5,446,660	5,559,910	5,659,150	5,782,570	5,767,230	5,761,600	5,551,940	5,245,650	5,123,660	4,912,790	4,643,050	4,399,820	4,246,689	4,149,777	4,012,717	3,801,454	3,592,716
Inventory	US$ in thousands	310,910	349,513	379,259	331,070	393,128	477,935	534,477	568,565	629,576	669,297	636,969	516,437	484,959	445,918	374,109	307,545	297,293	299,830	306,902	238,201
Inventory turnover		17.32	15.66	14.30	16.45	14.14	11.84	10.82	10.14	9.15	8.30	8.24	9.92	10.13	10.41	11.76	13.81	13.96	13.38	12.39	15.08

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,384,480K ÷ $310,910K
= 17.32

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory in a given period. A higher inventory turnover ratio typically indicates that a company is selling goods quickly, which is generally seen as positive.

Based on the data provided for Amkor Technology Inc, we can observe fluctuations in the inventory turnover ratio over the specified quarters. The inventory turnover ratio decreased from 15.08 on March 31, 2020, to 8.24 on June 30, 2022, indicating a decline in the rate of inventory turnover during this period.

However, there was a gradual increase in the inventory turnover ratio from June 30, 2022, onwards, reaching a peak of 17.32 on December 31, 2024. This upward trend suggests that Amkor Technology Inc improved its inventory management efficiency and was able to sell and replace its inventory at a faster rate in the latter part of the period.

Overall, the fluctuations in the inventory turnover ratio for Amkor Technology Inc indicate varying levels of inventory management efficiency over the quarters, with a noticeable improvement towards the end of the period. This suggests that the company may have implemented effective inventory control measures to optimize its operations and enhance overall financial performance.