Benchmark Electronics Inc (BHE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,386,080 | 2,567,910 | 2,631,100 | 2,049,420 | 1,878,080 |
| Inventory | US$ in thousands | 553,654 | 683,801 | 727,749 | 523,240 | 327,377 |
| Inventory turnover | 4.31 | 3.76 | 3.62 | 3.92 | 5.74 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,386,080K ÷ $553,654K
= 4.31
The inventory turnover for Benchmark Electronics Inc has been gradually decreasing over the past five years. In December 2020, the inventory turnover was 5.74, indicating that the company's inventory was turning over roughly 5.74 times during that year. However, by December 2024, the inventory turnover had decreased to 4.31.
This decline suggests that Benchmark Electronics Inc may be managing its inventory less efficiently over time, as a lower inventory turnover ratio typically indicates that a company is holding onto its inventory for a longer period before selling it. This could potentially lead to increased carrying costs, storage costs, and risk of obsolescence.
Benchmark Electronics Inc should closely monitor its inventory management practices and explore ways to improve efficiency in order to optimize its working capital and enhance overall financial performance.
Peer comparison
Dec 31, 2024