Benchmark Electronics Inc (BHE)

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	2,386,081	2,417,469	2,477,081	2,545,336	2,567,906	2,626,073	2,680,280	2,683,352	2,631,096	2,523,577	2,336,929	2,164,405	2,049,418	1,949,009	1,910,429	1,869,974	1,878,083	1,878,625	1,905,302	2,001,387
Inventory	US$ in thousands	553,654	581,901	599,842	637,675	683,801	725,349	756,391	778,137	727,749	746,920	666,742	608,347	523,240	478,325	415,322	355,164	327,377	352,851	363,665	338,437
Inventory turnover		4.31	4.15	4.13	3.99	3.76	3.62	3.54	3.45	3.62	3.38	3.50	3.56	3.92	4.07	4.60	5.27	5.74	5.32	5.24	5.91

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,386,081K ÷ $553,654K
= 4.31

Inventory turnover is a crucial efficiency metric for Benchmark Electronics Inc, reflecting how many times the company's inventory is sold and replaced over a certain period. The trend analysis of Benchmark Electronics Inc's inventory turnover shows a gradual decline from 5.91 on March 31, 2020, to 4.31 by December 31, 2024.

A decreasing inventory turnover ratio may indicate potential issues within the company's operations, such as overstocking, slow-moving inventory, or inadequate sales. This could lead to increased holding costs, obsolete inventory, or liquidity constraints.

Benchmark Electronics Inc should closely monitor its inventory management practices, including procurement, production, and sales forecasting, to optimize inventory levels and improve turnover efficiency. Additionally, the company may need to streamline its supply chain processes and adjust its production to better align with customer demand to enhance inventory turnover in the future.