Amkor Technology Inc (AMKR)

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	5,897,780	5,968,560	6,086,910	6,075,580	6,068,230	5,851,710	5,477,470	5,286,610	4,998,790	4,736,370	4,493,140	4,340,009	4,243,097	4,012,717	3,801,454	3,592,716	3,403,211	3,346,632	3,388,440	3,512,556
Inventory	US$ in thousands	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	220,602	216,663	217,638	227,502
Inventory turnover		15.00	12.49	11.39	10.69	9.64	8.74	8.60	10.24	10.31	10.62	12.01	14.11	14.27	13.38	12.39	15.08	15.43	15.45	15.57	15.44

December 31, 2023 calculation

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

AMKOR Technology Inc.'s inventory turnover has exhibited a generally positive trend over the past two years, increasing from 8.24 in Q2 2022 to 14.14 in Q4 2023. This suggests that the company has been more efficient in managing its inventory during this period.

The inventory turnover ratio provides insights into how effectively a company is managing its inventory levels. A higher inventory turnover ratio indicates that the company is selling its products more quickly and efficiently, which can lead to lower carrying costs, reduced risk of obsolete inventory, and improved cash flow.

AMKOR's inventory turnover ratios have consistently been above 9 in the past eight quarters, indicating that the company has been effectively managing its inventory levels and turning over its inventory multiple times within a year. This demonstrates strong operational efficiency and effective inventory management practices within the company.

Overall, the increasing trend in AMKOR's inventory turnover ratio indicates improved efficiency in managing its inventory, resulting in potential cost savings and enhanced operational performance.